Sell Rating for Altimmune Inc. Due to Financial Struggles and Competitive Challenges in Drug Development

Altimmune (ALT) has received a new Sell rating, initiated by Goldman Sachs analyst, Corinne Johnson.

Corinne Johnson has given her Sell rating due to a combination of factors impacting Altimmune Inc. The primary concern is the company’s financial position, which poses significant challenges to the development of its lead asset, pemvidutide. This drug, a dual GLP-1/GCGR agonist, is being developed for obesity and related liver diseases, but it has not shown a distinct advantage over existing treatments in clinical trials.
Furthermore, the competitive landscape for such treatments is crowded, and Altimmune will need either a strategic partner or additional funding to continue its development efforts. The lack of a unique profile for pemvidutide, coupled with financial constraints, makes it difficult for Altimmune to successfully navigate the clinical development process necessary to bring the drug to market. These factors contribute to the Sell rating and the substantial downside risk reflected in the $1 price target.