Altimmune’s recent Phase 2 trial results for pemvidutide show a lot of promise in the obesity treatment market. As someone working in the pharmaceutical industry, particularly in the obesity sector, I can confidently say that these results are impressive. Pemvidutide has shown effective weight loss, lean mass preservation, and overall health improvements, making it a standout candidate in this space.

Altimmune has hinted that they are seeking a partner or buyout before the FDA readout expected in late Q3. Since we are already in Q3, an announcement could come any day now. With a high percentage of the float shorted, this stock has the potential for a significant move upward.

Short Interest:

The short interest in Altimmune is substantial, over 30% of shares are shorted! Positive news, such as a partnership or buyout announcement, could lead to a rapid increase in the stock price as short sellers rush to cover their positions, resulting in a parabolic move.

Price Target:

All major banks have set price targets (+$20 to +$25) significantly higher than today’s price ($6.62). I believe this stock is fundamentally undervalued with a lot of upside potential.

Fundamentals of Pemvidutide:

Pemvidutide is a GLP-1/Glucagon Dual Receptor Agonist:

• GLP-1 receptor activation helps reduce appetite and regulate glucose.
• Glucagon receptor activation increases energy expenditure by boosting fat metabolism.

Phase 2 MOMENTUM Trial Details

• Trial Details: 391 subjects with obesity or overweight were randomized to 1.2 mg, 1.8 mg, 2.4 mg pemvidutide, or placebo weekly for 48 weeks.
• Weight Loss Results: Mean weight loss of 10.3%, 11.2%, 15.6%, and 2.2% for the 1.2 mg, 1.8 mg, 2.4 mg doses, and placebo, respectively.
• Lean Mass Preservation: 21.9% of weight loss attributable to lean mass, with 78.1% from fat.

Comparison and Health Improvements

• Lean Mass Preservation: Pemvidutide offers better lean mass preservation compared to diet, exercise, and other incretin weight loss drugs, which can result in up to 40% lean mass loss.
• Health Improvements: Significant reductions in serum lipids and blood pressure, with no notable increases in heart rate or cardiac events, suggesting a favorable cardiovascular profile.

Conclusion:

Pemvidutide's exceptional lean mass preservation sets it apart, especially for those prioritizing muscle mass retention. With the potential for partnership or buyout news, high short interest, and a class-leading obesity product, this stock could see explosive growth.

I expect Altimmune’s stock to approach $50 by the end of this quarter. This is a compelling opportunity for those looking to invest in a fundamentally strong and undervalued stock with substantial upside potential.