Altimmune stock price is still at risk despite Pemvidutide hopes

Altimmune (NASDAQ: ALT) stock price drifted upwards on Monday amid optimism that it will become a leading player in the weight loss industry. It rose by over 2%, meaning that it has soared by over 25% from the lowest point last week.

Pemvidutide hopes rise

Altimmune is a small biotech company that is aiming to become a major player in the weight loss and nonalcoholic steatohepatitis industries. 

Pemvidutide, its main drug, has shown encouraging signs in clinical trials, with most of the subjects losing substantial weight. These users lost respectable weight loss in about 48 weeks. 

Pemvidutide works by mimicking the complementary effects of diet and exercise on weight loss. Its GLP-1 features suppress appetite while the glucagon element increasing energy expenditure in the body. 

In a statement at the American Diabetes Association gathering, the company said that its drug had the potential to become a game-changer in the industry. The CEO also noted that Pemvidutide had a differentiated profile compared to the existing drugs in the market.  

Still, there are some genuine concerns about Altimunne stock price. The most important one is that the weight loss industry has become highly competitive, with Eli Lilly and Novo Nordisk having the biggest market share.

The challenge for new companies is how to compete with these giants, which have virtually cornered the market. They are also continuing this process by boosting their production and gradually lowering prices to meet the demand. 

Other companies are entering the weight loss industry as well. Hims & Hers has started to sell cheaper weight loss drugs that go for less than $100. Amgen is also working on its obesity push while Viking Therapeutics has made progress in its testing.

Proponents for Altimmune argue that the market is still big enough for more companies to enter the industry. 

Altimmune stock price forecast

ALT chart by TradingView

The daily chart reveals that the ALT share price has been in a downward trend in the past few weeks. It has formed a descending channel shown in green. At the same time, the stock has formed a head and shoulders chart pattern, a popular bearish sign.

The stock is also nearing forming the death cross pattern as the 200-day and 50-day Exponential Moving Averages (EMA) cross each other. 

Therefore, the Altimmune stock price will likely resume the bearish trend in the coming days. This sell-off will be confirmed if the stock drops below last week’s low of $5.70. 

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