GAITHERSBURG, Md. — Altimmune, Inc. announced a public offering of its common stock and warrants to fund one new Phase 3 trial for its liver disease drug, pemvidutide.
"Altimmune is a late clinical-stage biopharmaceutical company developing therapies for patients with serious liver diseases," the company stated in its press release. Its lead candidate, pemvidutide, is a unique dual-action therapy targeting both glucagon and GLP-1 receptors for treating metabolic dysfunction-associated steatohepatitis (MASH).
The underwritten offering consists of shares of its common stock, pre-funded warrants, and accompanying common stock warrants, though the total size and terms of the offering were not disclosed. Leerink Partners and Barclays are acting as joint bookrunning managers, with Titan Partners as a co-bookrunning manager.
The move to raise capital is a common strategy for clinical-stage biotech firms facing costly late-stage trials, but it comes at the cost of diluting existing shareholders' equity. Success of the offering and the subsequent trial could be critical for the company's long-term valuation.
The net proceeds are earmarked to advance the clinical development of pemvidutide, specifically for its upcoming Phase 3 trial in MASH, a serious liver condition with no approved treatments. The funds will also be used for working capital and general corporate purposes.
Pemvidutide is a peptide-based therapeutic that acts on both the GLP-1 and glucagon receptors in a balanced 1:1 ratio. Beyond MASH, Altimmune is also developing the candidate for alcohol use disorder (AUD) and alcohol-associated liver disease (ALD).
The offering is being made pursuant to effective shelf registration statements on Form S-3 filed previously with the U.S. Securities and Exchange Commission.
For investors, the offering presents a trade-off. While the issuance of new shares will dilute their current holdings, the capital is essential for funding the pivotal Phase 3 trial that could unlock significant value if successful. The next major catalyst for Altimmune will be the initiation and subsequent data from this trial.
This article is for informational purposes only and does not constitute investment advice.
