Allurion Technologies Secures Funding, Reports Strong Preliminary Results

Allurion Technologies, Inc. (NYSE: ALUR), a company dedicated to ending obesity, has announced a private placement of common stock and preliminary unaudited financial results for the fourth quarter and fiscal year 2024. The company has entered into a subscription agreement with funds affiliated with RTW Investments, LP (RTW) for the purchase and sale of 841,751 shares of the Company’s common stock in a private placement at a purchase price of $2.97 per share. The private placement is expected to result in gross proceeds of $2.5 million and extend the Company’s runway through early 2026. The subscription agreement also includes an option to fund up to an additional $10 million in subsequent tranches. The private placement is expected to close on or about January 15, 2025, subject to the satisfaction of customary closing conditions. The Company expects to use the net proceeds from the private placement for working capital and other general corporate purposes.

The Company also announced preliminary unaudited financial results for the fourth quarter and fiscal year 2024. Preliminary unaudited revenue for the fourth quarter of 2024 is expected to be approximately $5.6 million and full year revenue to be approximately $32 million, in line with previously issued guidance. Procedure volume growth for the full year, as estimated by new app users and excluding France, is expected to be approximately 4%, higher than previously issued guidance.

Dr. Shantanu Gaur, Founder and Chief Executive Officer of Allurion, expressed his pleasure with the preliminary unaudited results from the fourth quarter, stating that the company is in line with its previously issued guidance for revenue and ahead for procedure volume while restructuring its business so that it can grow more profitably and sustainably in the future. On the heels of the results from the AUDACITY trial, Dr. Gaur believes that this private placement from RTW provides the company with the runway it needs to execute its 2025 plan. The 2025 plan includes scaling the new commercial strategy, advancing the Allurion Balloon through the FDA approval process, setting the company up for a profitable 2026, expanding its digital business lines, and resuming commercialization in France.

The private placement with RTW Investments represents a significant financial maneuver for Allurion, securing $2.5 million immediately with potential for an additional $10 million. The deal's pricing at $2.97 per share provides a clear market valuation benchmark. The Q4 2024 revenue of $5.6 million and full-year revenue of $32 million meeting guidance demonstrates operational stability. The 4% procedure volume growth (excluding France) surpassing guidance suggests improving market penetration despite challenges. The runway extension through early 2026 provides important operational flexibility for FDA approval pursuit and commercial strategy execution. However, the need for private placement funding indicates potential cash flow pressures, though the strategic investment from a respected healthcare investor like RTW adds credibility.

The AUDACITY trial results coupled with the strategic funding presents a compelling growth trajectory for Allurion's novel obesity treatment approach. The focus on FDA approval process advancement signals potential market expansion in the lucrative US market. The temporary pause in French operations, while impacting current metrics, allows for strategic reorganization. The company's pivot toward profitable growth and digital business expansion aligns with broader medical device industry trends toward integrated treatment solutions. The 4% procedure volume growth despite market challenges validates the treatment's market acceptance. The emphasis on scaling a new commercial strategy while pursuing regulatory approvals positions Allurion at a critical inflection point in the obesity treatment market.




In conclusion, Allurion Technologies has secured crucial funding through a private placement with RTW Investments and reported strong preliminary results for the fourth quarter and fiscal year 2024. The company's 2025 plan, which includes scaling its commercial strategy, advancing the Allurion Balloon through the FDA approval process, and expanding its digital business lines, is well-positioned to drive growth and profitability. With the support of a respected healthcare investor and a strong financial performance, Allurion is poised to make a significant impact in the obesity treatment market.