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Allurion reports weight loss success with gastric balloon

Published 10/09/2024, 08:13 AM
ALUR
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NATICK, Mass. - Allurion Technologies, Inc. (NYSE: ALUR) has revealed the results of a clinical study published in the journal Clinical Obesity, which indicates that their Allurion Program, featuring the Allurion Gastric Balloon, has been effective in achieving weight loss in obese patients. The study monitored 167 individuals over a period of one year, with participants showing an average weight reduction of 15.7% at four months, 17.1% at six months, and maintaining a 14.7% loss at one year.

The research emphasized not only weight loss but also body composition, noting a significant decrease in body fat percentage from 39% to 35.7% at six months, without a reduction in muscle mass. The Allurion Balloon, which is a swallowable, non-surgical device for weight loss, was highlighted for its safety and efficiency, with no serious adverse events reported during the study.

Dr. Napoleón Salgado Macías, the study’s senior author, stated that the Allurion Balloon, coupled with the Allurion Program's lifestyle changes, can lead to sustainable weight management and improvements in body composition. The Allurion Program also includes a virtual care suite, which provides tools such as a mobile app for consumers and insights for healthcare providers to support weight loss management.

While the study presents positive outcomes, it is important to note that the Allurion Gastric Balloon is still classified as an investigational device in the United States. The company's forward-looking statements suggest a strong belief in the potential of their product to improve patient outcomes in terms of weight reduction and body composition changes. However, like all clinical studies, the results are subject to various factors and the company acknowledges the risks and uncertainties inherent in product development and commercialization.

This news is based on a press release statement from Allurion Technologies, Inc. and provides an overview of the study's findings as they relate to the Allurion Program's effectiveness in weight loss and body composition improvement.

In other recent news, Allurion Technologies has seen significant developments. TD Cowen and Roth/MKM have initiated coverage on Allurion's shares, both giving the stock a Buy rating. Allurion's intragastric balloon technology has been recognized for its potential in the global obesity market. The company has also reported a 25% increase in Q2 revenue, reaching $11.8 million. However, it revised its 2024 revenue guidance to $40 to $45 million due to regulatory and macroeconomic challenges. Allurion has appointed Keith Johns, with extensive experience from the metabolic drug industry, to its Board of Directors. The company also revealed an average weight loss of 12.5% in a study involving their Allurion Program, which included data from 2,107 patients. However, Allurion faces a potential delisting from the New York Stock Exchange due to non-compliance with the exchange's minimum share price requirement but plans to address this issue within the allotted six-month cure period. These are recent developments for Allurion Technologies.

InvestingPro Insights

While Allurion Technologies, Inc. (NYSE: ALUR) reports promising clinical results for its Allurion Program, a look at the company's financial metrics from InvestingPro reveals some challenges. The company's market capitalization stands at a modest $45.6 million, reflecting its current position as a smaller player in the medical technology sector.

InvestingPro Data shows that Allurion's revenue for the last twelve months as of Q2 2023 was $47.59 million, with a concerning revenue decline of 23.59% over the same period. This decline aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year, which could impact the company's ability to capitalize on its clinical successes.

On a positive note, Allurion boasts impressive gross profit margins, with the gross profit margin for the last twelve months as of Q2 2023 standing at a robust 76.19%. This strength in margins could provide some financial cushion as the company works to bring its investigational device to market in the United States.

However, investors should be aware that Allurion is currently operating at a loss, with an operating income margin of -139.17% for the last twelve months as of Q2 2023. Another InvestingPro Tip warns that the company is quickly burning through cash, which could be a concern given the capital-intensive nature of medical device development and commercialization.

For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Allurion Technologies, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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