NATICK, Mass. - Allurion Technologies, Inc. (NYSE: ALUR) has announced the results of a study indicating sustained and improved weight loss in patients using its Allurion Program. The study, involving 486 participants at a Southeast Asian bariatric center, showed an average weight reduction from 10.5% at four months to 13.7% at one year.
The Allurion Program incorporates the Allurion Balloon, a swallowable gastric balloon, and a 12-month virtual support regimen. Patients were monitored using the Allurion App, Connected Scale, and Health Tracker, with access to registered dieticians. The study's lead author, Dr. Nik Ritza Kosai, highlighted the effectiveness of the balloon combined with long-term virtual support in maintaining and augmenting weight loss.
In contrast, separate research on GLP-1 therapy reported significant weight regain after discontinuation of the drug and lifestyle interventions. Dr. Ram Chuttani, Chief Medical Officer of Allurion, emphasized that the study's findings support the company's approach of combining the Allurion Balloon with consistent monitoring and guidance.
This data could influence the weight loss industry, particularly as previous studies have shown a tendency for weight regain following the cessation of alternative treatments. The Allurion Program's ability to maintain and increase weight loss over a year may offer a different pathway for individuals struggling with obesity.
The Allurion Gastric Balloon is currently under investigation in the United States and is not yet approved by the FDA. Allurion's offerings also include the Allurion Virtual Care Suite, which is available to healthcare providers for various weight loss therapies.
The information in this article is based on a press release statement from Allurion Technologies, Inc.
In other recent news, Allurion Technologies reported a 25% rise in second-quarter revenue to $11.8 million, despite facing regulatory and macroeconomic challenges. The company, however, revised its full-year 2024 revenue guidance downward to $40 to $45 million due to these hurdles. Chardan Capital Markets maintained a Buy rating on Allurion's stock but reduced the price target to $2.50, expressing hope for positive AUDACITY pivotal study results.
Regulatory issues resulted in the suspension of Allurion's product sales in France, a market that accounted for 16% of total product sales in the first half of 2024. Allurion is also confronting a potential delisting from the New York Stock Exchange due to non-compliance with the exchange's minimum share price requirement. However, the company plans to address this issue within the allotted six-month cure period.
Despite these challenges, Allurion remains optimistic about achieving profitability by 2025 and is enhancing its digital offerings, including an AI-powered weight loss coach and a virtual care suite. The company also welcomed Ojas A. Buch as the new Chief Operating Officer. These are among the recent developments for Allurion Technologies.
InvestingPro Insights
Allurion Technologies, Inc. (NYSE: ALUR) has recently shared promising results from a weight loss study, showcasing the effectiveness of its Allurion Program. As investors consider the potential impact of these findings on the company's market position, it is essential to look at the financial health and market performance of Allurion. Here are some key insights based on real-time data from InvestingPro:
Despite the positive clinical outcomes, Allurion's financial metrics reflect some challenges. The company's market capitalization is currently at $38.45 million, indicating a relatively small player within the medical device industry. The gross profit margin is notably high at 76.19%, as of the last twelve months ending Q2 2024, underscoring Allurion's ability to maintain impressive profitability on its products. Yet, concerns arise from the company's operational efficiency, with an operating income margin of -152.62%, reflecting significant expenses relative to revenue.
InvestingPro Tips suggest that Allurion may be facing difficulties in sustaining its financial runway, as indicated by the company quickly burning through cash. Additionally, analysts do not anticipate Allurion will be profitable this year, which aligns with the negative P/E ratio of -0.75, further emphasizing the company's current lack of profitability.
For investors considering Allurion's stock, the recent price movement could be of interest. The stock is trading near its 52-week low, with the price sitting at just 9.3% of the 52-week high. This could potentially signal a buying opportunity, especially as the RSI suggests the stock is in oversold territory. However, it is important to consider the high price volatility that Allurion's stock generally trades with, which could mean a riskier bet for investors.
For those looking for more in-depth analysis, there are 19 additional InvestingPro Tips available, which can provide further guidance on Allurion's financial health and stock performance. These tips are accessible through the InvestingPro platform at https://www.investing.com/pro/ALUR.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.