Goldman Sachs says this little-known biotech inventory can double on probably ‘blockbuster’ income
Buyers can purchase biopharma inventory Altimmune as it may double from right here relying on the success of a brand new weight problems drug, in response to Goldman Sachs. Analyst Corinne Jenkins initiated protection of Altimmune with a purchase score, saying she strongly expects a research on pemvidutide as a therapy for weight problems will yield optimistic outcomes. “We take a optimistic view on the chance of a profitable final result for the Ph2 MOMENTUM research of ALT’s lead asset, pemvidutide, in sufferers with weight problems based mostly on our evaluation of the scientific information and a proprietary logistic development mannequin,” Jenkins wrote in a Wednesday notice. “A optimistic final result from this trial offers proof-of-concept for pemvidutide in weight problems, unlocking a major business alternative for the agent the place we additionally see a excessive diploma of strategic curiosity in clinically confirmed, Ph3-ready candidates,” Jenkins added. Altimmune, which introduced in April it began a 48-week trial for the therapy, is just not the one biopharmaceutical firm specializing in creating medicine for weight problems. Different massive, notable gamers embrace Novo Nordisk A/S and Eli Lilly . Nonetheless, the analyst expects that the rising weight problems market is just not a “zero-sum sport” and has niches for brand new gamers. “We imagine that cardiovascular and lipid advantages conferred by pemvidutide will enable ALT to earn significant market share and blockbuster revenues,” Jenkins wrote. The analyst expects additional research on the pemvidutide’s therapy on different illnesses may additionally assist differentiate the drug. “Past weight problems, we notice incremental read-outs in NASH and Sort 2 Diabetes over the subsequent six months which is able to construct out the profile of pemvidutide throughout metabolic illnesses, which we see as the important thing to differentiation throughout an rising aggressive panorama,” Jenkins wrote. Shares of Altimmune are up 8% this yr, however the analyst expects they’re going to advance additional. Her $20 value goal implies roughly 101% upside from Wednesday’s closing value. The inventory is up greater than 4% in Thursday premarket buying and selling. —CNBC’s Michael Bloom contributed to this report.