Altimmune Announces $75 Million Stock Offering Amid Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Stock Offering Impact: Altimmune's announcement of a direct offering of 17,045,454 shares at approximately $4.40 each is expected to generate about $75 million in gross proceeds, yet this has led to a 17.15% drop in stock price, indicating market concerns over its funding strategy.
- Clear Use of Funds: The proceeds from this offering will be allocated to preparations for the upcoming Phase 3 trial for MASH (metabolic dysfunction-associated steatohepatitis) and general working capital, highlighting the company's commitment to advancing its drug development.
- Market Performance Analysis: Despite a 26.33% decline in share price over the past year, Altimmune's stock remains above its 20-day and 100-day simple moving averages, suggesting short-term strength; however, the RSI indicates overbought conditions, signaling potential correction risks ahead.
- Product Development Outlook: Altimmune is developing pemvidutide as a potential treatment for obesity and metabolic-associated steatohepatitis, and the success of this funding will significantly impact its future market performance and growth trajectory.
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Analyst Views on ALT
Wall Street analysts forecast ALT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALT is 13.00 USD with a low forecast of 12.00 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 5.100
Low
12.00
Averages
13.00
High
14.00
Current: 5.100
Low
12.00
Averages
13.00
High
14.00
About ALT
Altimmune, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on developing next-generation peptide-based therapeutics. It is developing pemvidutide, a GLP-1/glucagon dual receptor agonist for the treatment of obesity, metabolic dysfunction-associated steatohepatitis (MASH) and other indications. Activation of the GLP-1 and glucagon receptors is believed to mimic the complementary effects of diet and exercise on weight loss, with GLP-1 suppressing appetite and glucagon increasing energy expenditure. Glucagon is also recognized as having direct effects on hepatic fat metabolism, to rapid reductions in levels of liver fat and serum lipids. The Company has completed the MOMENTUM Phase II obesity trial and is being studied in the IMPACT Phase IIb MASH trial. The Company also develops and commercializes surfactant-functionalized (EuPort domain) incretin-based peptide therapeutics, including (GLP-1-glucagon)/oxyntomodulin, and variants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Altimmune Closes Direct Offering of 17 Million Shares Raising $75 Million
- Funding Size: Altimmune successfully closed a registered direct offering of 17,045,454 shares, raising approximately $75 million, which will support the upcoming Phase 3 trial for pemvidutide.
- Trial Preparation: The proceeds will be allocated towards the initiation of the Phase 3 clinical trial for metabolic dysfunction-associated steatohepatitis (MASH), aimed at validating the efficacy of pemvidutide and enhancing the company's market competitiveness in liver disease treatment.
- Strategic Flexibility: CEO Jerry Durso emphasized that this financing strengthens Altimmune's balance sheet and increases operational and strategic flexibility, ensuring the company can continue delivering meaningful impacts for patients and long-term value for shareholders.
- Market Response: The pre-funded warrants in the offering have an exercise price of $0.001 per share, are exercisable immediately, and have no expiration date, reflecting investor confidence in Altimmune's future developments, which may positively influence the company's stock price.
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