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- Altimmune’s drug to treat obesity had adverse effects on subjects.
- Positive trail reports were reported just a few hours earlier.
Altimmune shares dropped almost 52.43% after reports of negative side effects of obesity drug trials surfaced, raising serious questions. Just hours after the clinical-stage biopharmaceutical company announced positive results from the week-24 interim analysis of their obesity drug, the news of adverse events regarding the drug trials emerged, causing a massive drop.
Altimmune – Obesity Drug Weighs Heavy On Company?
Founded in 1997, with headquarters in Gaithersburg, Maryland, United States, Altimmune focuses on developing novel peptide-based therapeutics for treating liver diseases and obesity.
Recent reports noted that although patients’ weight lowered by 10%, serious side effects were reported for the phase-2 obesity drug in trials – Pemvidutide. Mainly, the complaints were about nausea and vomiting; some subjects reported dehydration and required quick rehydration in some serious cases.
Reportedly, the discontinuation rates for the tests were 24% in the subjects who received Pemvidutide. In comparison, the group which received a placebo for trial purposes recorded a dropout rate of 28%.
Altimmune Inc., (ALT) – The Side Effects on Numbers
When writing, Altimmune stock was trading at $5.24, with a massive drop of 52.11%. Previous close and open were at $10.92 and $6.85, respectively. At the same time, the fifty-two-week change was a gain of 56.22%. The volume was 8.31 million shares, and the average volume was 1.33 million shares.
Compared to the data from December 2022, revenue dropped by 103.36% from negative $110,000, operating expenses gained 0.74% from $3.81 million, and the operating margin was up by a whopping 128,902.94%. Return on assets and equity dropped by 25.73% and 44.07%, respectively.
On a quarterly basis, net income gained 9.33% from negative $21.66 million, while the net profit margin jumped by 2,801.12% from $19.69K. In comparison, the Earnings Per Share (EPS) gained 22.81% from negative $0.44.
Altimmune Inc. (ALT) – Candle Exploration
The impact of negative news on the price of a stock is evident. A massive drop — a prominent gap down, is displayed after news of the trials came out. However, the current rate is supposed to be protected by the new at S1 which is at the $3.88 mark. But will it be able to prevent further losses? It can’t be said for sure.
S1 can be a strong support, but the seriousness of the news and its potential impact on the market will decide its strength. The price will test the $9.67 mark before climbing up and might consolidate between S1 and that mark for a considerable amount of time. It is too early to predict the impact of the news.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
