Altimmune’s Stock Plummets Following Critical Short-Seller Analysis

Altimmune’s (Nasdaq:ALT) shares plummeted by as much as 19% on Tuesday following the release of a critical analysis by short-seller Kerrisdale Capital Management, led by Sahm Adrangi. The report casts doubt on the potential of Altimmune’s experimental obesity drug, following the company’s unsuccessful attempt to develop a Covid-19 vaccine.

Kerrisdale’s examination questions the efficacy of Altimmune’s drug, pemvidutide, against existing approved treatments and other GLP-1 agonists currently undergoing clinical trials—a class of drugs made popular by companies like Novo Nordisk A/S and Eli Lilly & Co. Despite a surge in Altimmune’s stock in December, driven by promising mid-stage study results for pemvidutide.

Kerrisdale predicts a grim future for the drug’s competitive edge. Altimmune, once engaged in the development of an intranasal Covid-19 vaccine which was discontinued in June 2021, now faces skepticism regarding its obesity treatment’s viability.

Despite Kerrisdale’s pessimistic outlook, Wall Street remains optimistic about Altimmune’s prospects. With seven analysts recommending a buy, one suggesting a hold, and none advising a sell, the average 12-month price target is set at a significant 150% increase from its current value.

Jonathan Wolleben, an analyst at Citizens JMP, advises buying on the current dip, suggesting that the negative report lacks substantial evidence and anticipates a recovery in Altimmune’s stock value.

ALT shares opened today at $8.78