Altimmune leads obesity drug developers lower after data for lead asset

Leading weight loss drug developers are on the decline after clinical-stage biotech Altimmune (NASDAQ:ALT) announced Phase 1 and Phase 2 results for its lead candidate, pemvidutide sending its shares more than 50% lower on Tuesday.

Citing topline data, Altimmune (ALT) said that pemvidutide, a GLP-1/glucagon dual receptor agonist, led to 10% or more weight loss in ~50% of subjects in its 48-week MOMENTUM Phase 2 obesity trial.

Its Phase 1b trial for pemvidutide in patients with type 2 diabetes has indicated that the experimental therapy at 2.4 mg led to a 7.7% weight loss over 12 weeks, while patients on placebo experienced a mean weight gain of 0.8%.

While Altimmune (ALT) plunged to a 10-month low, Piper Sandler defended the stock. “Street is over punishing ALT, which we believe is due to high discontinuation in high dose group without understanding differences in protocol,” the analyst Yasmeen Rahimi wrote with an Overweight rating on the stock.

Meanwhile, Viking Therapeutics (VKTX) developer of weight loss candidate VK2735 has lost ~17% after the announcement. VK2735 is a dual agonist of the GLP-1 receptors and the glucose-dependent insulinotropic polypeptide (GIP) receptors.

Pharma giants Eli Lilly (LLY), Amgen (AMGN), and Pfizer (PFE), all of which are advancing weight loss candidates either in early-stage trials or late-stage development, are on the decline despite gains in the broader market.

However, Novo Nordisk (NVO), which markets FDA-approved weight loss therapy Wegovy, is trading higher alongside Rhythm Pharmaceuticals (RYTM), the developer of weight loss medication Imcivree for certain rare forms of obesity.

According to Morgan Stanley, the market for anti-obesity drugs could reach $54B by 2030.