Goldman Sachs Downgrades Altimmune to Sell, Sees 79% Downside Potential.

Goldman Sachs has resumed coverage of Altimmune with a Sell rating and a $1 price target, representing 79% downside. The analyst believes the company's data has not demonstrated a meaningfully differentiated profile for pemvidutide in obesity or metabolic dysfunction associated steatohepatitis. The firm sees challenges for Altimmune to execute the full clinical development program required to bring pemvidutide to market.

Goldman Sachs has resumed coverage of Altimmune (NASDAQ:ALT) with a 'Sell' rating and a $1.00 price target, representing a 79% downside potential from the current price of $4.74. The investment bank's analysis focuses on Altimmune's lead asset, pemvidutide, a dual GLP-1/GCGR agonist being developed for obesity and related conditions, with a strategic emphasis on liver-specific diseases such as metabolic dysfunction-associated steatohepatitis (MASH) [1].

Goldman Sachs notes that clinical data to date has not shown a meaningfully differentiated profile for pemvidutide in either obesity or MASH treatments, despite the company's focus on liver-specific applications. The bank identifies significant challenges for Altimmune, which will need either a partnership or additional funding to complete clinical development. The firm's bearish outlook is primarily driven by pemvidutide's lack of differentiation in an increasingly crowded clinical landscape [1].

In recent news, Altimmune has enrolled the first patient in its Phase 2 trial evaluating pemvidutide for Alcohol-Associated Liver Disease (ALD). This trial aims to enroll around 100 patients to assess the drug's effectiveness over a 48-week period. Additionally, Altimmune's Phase 2b trial for MASH showed that pemvidutide met its primary endpoint, achieving MASH resolution in a significant portion of participants without worsening fibrosis. However, the improvements in fibrosis were not statistically significant, prompting mixed responses from the investment community [1].

Despite the mixed results, UBS and H.C. Wainwright maintained their 'Buy' ratings on Altimmune, citing long-term potential for pemvidutide across various indications. Altimmune plans to discuss the results with the FDA as it prepares for further trials [1].

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-downgrades-altimmune-stock-to-sell-on-pemvidutide-concerns-93CH-4129168