What drove ALT's Q2 2024 net profit decline?

The decline in Altimmune's Q2 2024 net profit can be attributed to **Increased R&D Expenses**, specifically in pemvidutide's clinical trials.

1. **Pemvidutide's Clinical Trials Costs**: The company's lead product candidate, pemvidutide, is a glucagon-like peptide-1 (GLP-1) agonist for the treatment of obesity and metabolic dysfunction-associated steatohepatitis (MASH). The Phase 2 Momentum Trial results, announced in November 2023, led to an overstatement of the drug's potential competitive advantage over other GLP-1 agonists, according to the class-action lawsuits pending against Altimmune. This overstatement may have led to inflated expectations and increased costs associated with advancing the drug's development.
2. **Syndax Pharmaceuticals Comparison**: Similar to Syndax Pharmaceuticals, Altimmune faces increased R&D expenses, with expectations of $50-$55 million for Q2 2024 and $240-$260 million for the full year 2024. This indicates that the costs associated with advancing GLP-1 agonists through clinical trials are substantial and can lead to significant fluctuations in net profit.
3. **Interest Income Increase**: Despite the net profit decline, Altimmune experienced an increase in interest income, rising to $2.41 million from $1.67 million in the same period last year. This suggests that the company is managing its financial resources efficiently, but the increase may not be sufficient to offset the higher R&D expenses.

In conclusion, the decline in Altimmune's Q2 2024 net profit is primarily driven by the increased costs associated with advancing pemvidutide through clinical trials, despite the company's efforts to manage its financial resources effectively.