Breaking Down Altimmune, Inc. (ALT) Financial Health: Key Insights for Investors

Are you keeping a close watch on Altimmune, Inc. (ALT) and wondering about its financial stability? As investors, we're all asking the critical questions: Does Altimmune have enough cash to fuel its operations? How effectively are they managing their research and development? With $131.9 million in cash, cash equivalents, and short-term investments as of December 31, 2024, and top-line data from the Phase 2b IMPACT trial of pemvidutide in MASH expected in Q2 2025, is Altimmune on track for success, or are there hidden risks lurking beneath the surface? Let's dive into the key financial insights that can help you make informed decisions about ALT.

Altimmune, Inc. (ALT) Revenue Analysis

As a clinical stage biopharmaceutical company, Altimmune, Inc. does not currently generate revenue from product sales. Its financial performance is primarily evaluated based on its ability to secure funding, manage expenses, and advance its pipeline of drug candidates. Therefore, traditional revenue stream analysis is not applicable in the same way as it would be for a commercial-stage company.

Understanding Altimmune’s financial health requires a focus on:

• Cash reserves and runway
• Sources of funding (e.g., equity offerings, grants, partnerships)
• Research and development expenses
• General and administrative expenses

For insights into the company's strategic direction, refer to: Mission Statement, Vision, & Core Values of Altimmune, Inc. (ALT).

Given its status, analyzing revenue streams in the conventional sense is not relevant for Altimmune. Instead, investors should monitor the company's financial resources and expenditures to assess its operational sustainability and progress in drug development.

Altimmune, Inc. (ALT) Profitability Metrics

Analyzing Altimmune, Inc. (ALT)'s financial health requires a detailed examination of its profitability metrics, which provide insights into the company's efficiency and ability to generate profits. Given its status as a clinical-stage biopharmaceutical company, understanding these metrics is crucial for investors.

Altimmune, Inc. (ALT) reported a gross profit of $1.38 million for the year 2024. This figure is crucial for evaluating the direct profitability of Altimmune's products or services, reflecting the revenue remaining after deducting the cost of goods sold. This gross profit contrasts with a gross profit of $0.39 million for the year 2023.

Operating profit, which assesses profitability from core business operations, is a key indicator of financial performance. Altimmune reported an operating loss of $124.95 million for the year 2024, indicating that the company's operational expenses exceeded its gross profit. This operating loss compares to an operating loss of $83.24 million for the year 2023.

Net profit margin is a critical metric that reveals the percentage of revenue remaining after all expenses, including taxes and interest, have been deducted. For the year 2024, Altimmune reported a net loss of $124.43 million. This net loss compares to a net loss of $83.43 million for the year 2023. These figures highlight the financial challenges Altimmune faces as it invests heavily in research and development.

Trends in profitability over time are essential for understanding the trajectory of Altimmune's financial health. Here’s a brief overview:

• Gross Profit: Increased from $0.39 million in 2023 to $1.38 million in 2024.
• Operating Loss: Increased from $83.24 million in 2023 to $124.95 million in 2024.
• Net Loss: Increased from $83.43 million in 2023 to $124.43 million in 2024.

These trends indicate that while gross profit has increased, operating and net losses have also grown, reflecting higher operational expenses and continued investment in research and development activities.

Given that Altimmune is a clinical-stage biopharmaceutical company, it is typical to incur significant research and development expenses, which can result in operating and net losses. Investors should consider these factors when evaluating Altimmune's financial performance.

Operational efficiency can be evaluated by examining cost management and gross margin trends. Altimmune's increase in gross profit suggests some improvement in direct cost management related to its products or services. However, the rise in operating expenses indicates that overall cost management needs further attention.

Here's a summary table of Altimmune's key profitability metrics for 2023 and 2024:

For further insights into Altimmune's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Altimmune, Inc. (ALT).

Altimmune, Inc. (ALT) Debt vs. Equity Structure

Understanding how Altimmune, Inc. (ALT) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial stability and risk profile.

As of the fiscal year 2024, a detailed breakdown of Altimmune, Inc. (ALT)'s debt structure reveals the following:

• Long-term Debt: Information regarding Altimmune's long-term debt for 2024 is not available in the provided search results.
• Short-term Debt: Similarly, specific figures for Altimmune's short-term debt for 2024 are not available in the provided search results.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater financial risk, as the company relies more on debt financing. Without the specific debt and equity figures for 2024, calculating the exact ratio and comparing it to industry standards is not possible. However, it's important to note that industry standards vary, and a direct comparison should consider the specific characteristics and risks of the biotechnology sector.

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial health. According to a recent filing, Altimmune reported $208.4 million in cash, cash equivalents and short-term investments as of March 31, 2024. The company believes these funds, along with the $37.5 million received in April 2024 from BARDA, will be sufficient to fund operations into the second half of 2026.

Altimmune, Inc. (ALT) strategically balances debt and equity to fund its operations. While specific details on debt issuances or refinancing activities are not available in the provided search results, the company's cash position and projected runway suggest a focus on managing its finances to support its clinical development programs. This balance is vital for biotech companies, which often require significant capital to fund research and development.

For more insights into the company's strategic direction, explore Mission Statement, Vision, & Core Values of Altimmune, Inc. (ALT).

Altimmune, Inc. (ALT) Liquidity and Solvency

When evaluating Altimmune, Inc. (ALT)'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing Altimmune, Inc.'s Liquidity:

Analyzing Altimmune's liquidity involves examining several key financial ratios and statements:

• Current and Quick Ratios: These ratios provide insights into Altimmune's ability to cover its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities. The quick ratio, also known as the acid-test ratio, excludes inventory from current assets, providing a more conservative measure of liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of Altimmune's working capital (current assets minus current liabilities) helps assess whether the company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: A review of Altimmune's cash flow statements, focusing on operating, investing, and financing activities, reveals how the company generates and uses cash. Positive operating cash flow is a sign of healthy core business operations.

A comprehensive liquidity analysis considers these factors in combination to provide a holistic view of Altimmune's short-term financial stability. For example, a consistently high current ratio alongside positive operating cash flow would generally indicate a strong liquidity position.

Altimmune, Inc.'s Cash Flow Trends:

The cash flow statement is divided into three main sections:

• Operating Activities: This section shows the cash generated or used from the company's core business operations. A positive cash flow from operations is generally a good sign, indicating that the company is generating enough cash from its business to cover its operating expenses.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flows related to debt, equity, and dividends. It shows how the company is financing its operations and growth.

Potential Liquidity Concerns or Strengths:

Based on the analysis of these financial metrics, potential liquidity concerns may arise if Altimmune exhibits:

• Declining current and quick ratios.
• Negative working capital.
• Negative operating cash flow.

Conversely, strengths would be indicated by:

• Improving liquidity ratios.
• Positive working capital trends.
• Strong operating cash flow.

Investors should monitor these indicators closely to assess Altimmune's ability to meet its short-term financial obligations and sustain its operations.

More insights about Altimmune, Inc. (ALT) can be found here: Mission Statement, Vision, & Core Values of Altimmune, Inc. (ALT).

Altimmune, Inc. (ALT) Valuation Analysis

Assessing whether Altimmune, Inc. (ALT) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This Breaking Down Altimmune, Inc. (ALT) Financial Health: Key Insights for Investors chapter provides an overview of these critical valuation aspects.

Currently, information on traditional valuation metrics such as Price-to-Earnings (P/E) ratio may not be relevant for Altimmune, Inc. (ALT) if the company has negative earnings. Instead, investors often look at alternative metrics more suitable for growth-oriented biotech companies.

Here's a breakdown of key valuation considerations:

• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio might suggest undervaluation, but it's essential to compare it against industry peers.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio assesses the company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization. It's useful for comparing companies with different capital structures.

Analyzing Altimmune, Inc. (ALT)'s stock price trends provides insights into market sentiment and investor confidence. Here's what to consider:

• 12-Month Stock Price Trend: Examining the stock's performance over the past year helps identify upward or downward trends, volatility, and overall market perception.
• Historical Stock Performance: Reviewing longer-term stock performance (e.g., 3-year or 5-year trends) can reveal patterns and potential growth trajectories.

As a clinical-stage biotechnology company, Altimmune, Inc. (ALT) does not currently offer dividends. Therefore, dividend yield and payout ratios are not applicable.

Analyst consensus on Altimmune, Inc. (ALT)'s stock valuation provides an external perspective on its potential. Key aspects to consider include:

• Consensus Rating: Analysts typically provide ratings such as 'buy,' 'hold,' or 'sell,' reflecting their overall view of the stock's investment potential.
• Price Targets: Analysts often set price targets, indicating their expectations for the stock's future value. Comparing the current stock price to the consensus price target can suggest whether the stock is undervalued or overvalued.

Altimmune, Inc. (ALT) Risk Factors

Altimmune, Inc. (ALT) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market and regulatory pressures. Understanding these factors is crucial for investors assessing the company's long-term viability.

Key risks impacting Altimmune, Inc. (ALT) include:

• Industry Competition: The biotechnology industry is intensely competitive. Altimmune, Inc. (ALT) competes with other companies, including those with significantly greater financial, technical, manufacturing, marketing, and other resources. These competitors may succeed in developing, acquiring, or licensing technologies and products that are more effective or less costly than those being developed by Altimmune, Inc. (ALT).
• Regulatory Changes: The development, testing, manufacturing, and marketing of Altimmune, Inc. (ALT)'s product candidates are subject to extensive regulation by regulatory authorities in the United States and other countries. These regulations are subject to change, and new regulations could be enacted that could prevent or delay regulatory approval of Altimmune, Inc. (ALT)'s product candidates.
• Market Conditions: Economic downturns or instability in financial markets could reduce the availability of funding to Altimmune, Inc. (ALT) and its potential partners, which could delay or prevent the company from completing clinical trials, obtaining regulatory approvals, and commercializing its product candidates.

Operational, financial, and strategic risks can be found in Altimmune, Inc. (ALT)'s recent earnings reports or filings. These include:

• Clinical Trial Risks: Altimmune, Inc. (ALT)'s product candidates are subject to extensive clinical testing before they can be approved for marketing. Clinical trials are expensive and time-consuming and have an uncertain outcome. A failure of a clinical trial could delay or prevent regulatory approval of the product candidate being tested.
• Manufacturing Risks: Altimmune, Inc. (ALT) relies on third-party manufacturers to produce its product candidates. Any problems with these manufacturers could delay or prevent the company from completing clinical trials, obtaining regulatory approvals, and commercializing its product candidates.
• Commercialization Risks: Even if Altimmune, Inc. (ALT) receives regulatory approval for its product candidates, there is no guarantee that they will be commercially successful. A number of factors could affect the commercial success of Altimmune, Inc. (ALT)'s product candidates, including the availability of competing products, the willingness of physicians to prescribe Altimmune, Inc. (ALT)'s products, and the willingness of payers to reimburse for Altimmune, Inc. (ALT)'s products.

Mitigation strategies and plans (if available) often involve diversifying product pipelines, securing intellectual property rights, and maintaining strong relationships with regulatory bodies. Financial risk mitigation includes maintaining sufficient cash reserves and securing additional funding through strategic partnerships or public offerings.

Here is a brief overview of financial data as of the fiscal year 2024:

For further insights into Altimmune, Inc. (ALT)'s values, refer to: Mission Statement, Vision, & Core Values of Altimmune, Inc. (ALT).

Altimmune, Inc. (ALT) Growth Opportunities

Altimmune, Inc. (ALT) is strategically positioned for future growth, driven by product innovations, market expansions, strategic initiatives, and competitive advantages. The company's lead candidate, pemvidutide, a GLP-1/glucagon dual receptor agonist, is central to its growth prospects.

Key growth drivers for Altimmune, Inc. (ALT) include:

• Product Innovations: Pemvidutide stands out due to its unique dual GLP-1/glucagon agonist mechanism. Clinical trials have demonstrated significant weight loss (15.6% reduction in body weight at week 48 on a 2.4 mg dose) and a favorable lean mass preservation profile, with only 22% of weight loss attributed to lean mass reduction. This is particularly important for older patients and those with sarcopenic obesity.
• Market Expansions: Altimmune is exploring the potential expansion of pemvidutide into new indications beyond obesity and MASH, including alcohol use disorder (AUD) and alcoholic liver disease (ALD). The company is expected to initiate a proof-of-concept Phase 2 trial for AUD in the second quarter of 2025, followed by a trial for ALD in the third quarter.
• Strategic Initiatives and Partnerships: Altimmune is open to deals and collaborations with large drugmakers to support the launch and development of pemvidutide. The company has a history of strategic partnerships, such as with Summit Biosciences in 2021 to develop a multidose nasal spray presentation of its AdCOVID™ vaccine candidate.
• Competitive Advantages: Pemvidutide's dual GLP-1/glucagon agonist mechanism, ability to preserve lean muscle mass, and improvements in serum lipids provide a competitive edge. The drug has shown unprecedented reductions in liver fat, with evidence of direct anti-fibrotic effects.

Future revenue growth projections and earnings estimates for Altimmune, Inc. (ALT) are as follows:

• Analysts forecast revenue growth of 64.3% per annum.
• Earnings are projected to grow by 35.8% per annum.
• EPS is expected to grow by 41.7% per annum.

Strategic initiatives that may drive future growth include:

• Expanding Indications: Altimmune is planning to expand pemvidutide's applications to include AUD and ALD, with Phase 2 trials expected to begin in 2025.
• Strategic Partnerships: The company is open to partnerships, particularly if the MASH data readout is positive, which could further enhance the value of pemvidutide.
• Phase 3 Efforts: Altimmune is strategically planning for Phase 3 trials, with or without partners, underscoring the potential for transformative growth.

Altimmune, Inc.'s (ALT) competitive advantages that position the company for growth include:

• Unique Mechanism of Action: Pemvidutide's dual GLP-1/glucagon agonist mechanism differentiates it from other incretin-based therapies.
• Promising Clinical Data: Clinical data has demonstrated significant weight loss and lean mass preservation.
• Strong Cash Position: As of the second quarter of 2024, Altimmune reported a cash position of $165 million, estimated to provide a runway into the first half of 2026.

Despite a net loss of approximately $125.6 million for the nine months ending September 30, 2024, Altimmune's strategic advantages and promising clinical data position it well for future growth.

Here is a summary of Altimmune's financial performance and analyst expectations:

Analysts have provided the following ratings and price targets for Altimmune, Inc. (ALT):

• Piper Sandler: Buy rating with a price target of $25.00.
• Jefferies: Buy rating with a price target of $28.00.
• Stifel Nicolaus: Buy rating with a price target of $18.00.
• William Blair: Market Perform rating with a mean target price of $22.38.

Read more about Altimmune, Inc. (ALT) Financial Health: Breaking Down Altimmune, Inc. (ALT) Financial Health: Key Insights for Investors