NATICK, Mass. - Allurion Technologies, Inc. (NYSE: ALUR) has announced results from a recent study demonstrating the safety and effectiveness of its Allurion Program, including the Allurion Balloon, in adolescent weight loss. The study involved 91 participants aged 15 to 17 with an average body mass index (BMI) of 35.6, who experienced an average weight reduction of 13.1% within four months after the balloon placement, without serious adverse events or early device removals.
The World Health Organization has highlighted a significant rise in obesity rates among both adults and adolescents globally. With the quadrupling of adolescent obesity and the associated risks of obesity-related complications in adulthood, there is a pressing need for safe and effective weight management interventions for younger populations.
Traditional bariatric surgeries and long-term pharmacotherapies, though beneficial for adults, pose concerns when applied to adolescents due to their invasive nature and potential risks. The Allurion Balloon presents a non-invasive alternative, potentially addressing these concerns. Dr. Ram Chuttani, Chief Medical Officer of Allurion, noted the study as a milestone in adolescent obesity treatment, emphasizing the balloon's non-invasive approach as a significant advantage over surgical and medication options.
The Allurion Program is a holistic weight loss platform that includes the Allurion Gastric Balloon, a swallowable, procedure-less intragastric balloon, and the Allurion Virtual Care Suite, which provides digital tools to support weight loss management. In the United States, the Allurion Gastric Balloon is currently classified as an investigational device.
The study's findings come at a time when the United States Preventive Services Task Force has found inadequate evidence for the use of pharmacotherapy, including GLP-1 drugs, in children and adolescents. Allurion's non-invasive treatment option could potentially offer a new avenue for early intervention in obesity treatment for this age group.
This announcement is based on a press release statement from Allurion Technologies, Inc. and offers insights into the company's ongoing efforts to combat obesity in adolescents through innovative, non-invasive methods.
In other recent news, Allurion Technologies reported a 25% increase in its second-quarter revenue to $11.8 million. However, the company revised its full-year 2024 revenue guidance downward to $40 to $45 million due to regulatory and macroeconomic challenges. Chardan Capital Markets maintained a Buy rating on Allurion's stock but reduced the price target to $2.50.
Allurion has also appointed Keith Johns to its Board of Directors, who brings extensive experience from the metabolic drug industry. The company reported sustained and improved weight loss in patients using its Allurion Program, according to a recent study.
Despite facing a potential delisting from the New York Stock Exchange due to non-compliance with the exchange's minimum share price requirement, Allurion plans to address this issue within the allotted six-month cure period. These are among the recent developments for Allurion Technologies.
InvestingPro Insights
Amidst the positive clinical study outcomes for Allurion Technologies' Allurion Program, financial metrics and market performance of the company reflect a challenging landscape. With a market capitalization of $40.09 million, Allurion is navigating through a period marked by a significant revenue decline of 23.59% over the last twelve months as of Q2 2024. Despite the impressive gross profit margin standing at 76.19% in the same period, the company's operating income margin has been deeply negative at -139.17%, indicating substantial losses relative to its revenue.
InvestingPro Tips for Allurion Technologies suggest that the company operates with a significant debt burden and may have trouble making interest payments on its debt, which aligns with the negative earnings figures, such as a basic and diluted EPS (Continuing Operations) of -0.82 USD. Moreover, Allurion has been quickly burning through cash, a critical factor for investors to consider, especially given the stock's high volatility and its tendency to move inversely to market trends. Notably, the stock price has experienced a precipitous decline over the past year, with a 1 Year Price Total Return as of day 249 in 2024 standing at -86.94%, and it is currently trading near its 52-week low, which could signal a potential buying opportunity for value investors or a red flag for risk-averse shareholders.
For those interested in a deeper analysis, there are 19 additional InvestingPro Tips available for Allurion Technologies, which can be accessed at the InvestingPro platform. These insights could prove invaluable for investors looking to understand the holistic financial health and future prospects of Allurion as it seeks to make a mark in the adolescent weight loss market with its non-invasive Allurion Balloon.
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