Altimmune hits 10-month low as Goldman Sachs downgrades on weight loss data

Following ~55% loss in the previous session in reaction to early-stage data for the company’s weight loss candidate pemvidutide, Altimmune (NASDAQ:ALT) shares plunged to the lowest level since May on Wednesday as Goldman Sachs downgraded it.

As the reason for her decision, the analyst Corinne Jenkins argues that discontinuation rates seen in Altimmune’s (ALT) Phase 2 MOMENTUM trial is higher than those observed in prior studies for the candidate.

The finding will require the company to test “longer dose titrations within future studies, potentially limiting the agent’s differentiation vs. late-stage or commercial competitors, in our view,” Jenkins wrote, downgrading ALT to Neutral from Buy.

Signs of improving serum lipid levels and weight loss effects suggest that the treatment will be best suited for obese patients with hypercholesteremia, the analyst added. Jenkins slashed the 12-month price target on ALT to $6 from $20 per share.

“While we continue to see a path forward for pemvidutide, development of the agent is complicated by the potential need for additional dose modification/exploration studies, and the commercial opportunity may be limited to a more niche subset of patients,” Jenkins argued.

Read: Despite a Buy rating on Altimmune (ALT), Seeking Alpha contributor The Wealth Wizard identified in February that the company’s heavy reliance on peptide-based treatments, including pemvidutide, was a significant risk.