U.S.-based Allurion Technologies’ (ALUR) stock skyrocketed after the company announced a new clinical study to combine its gastric balloon program with GLP-1 drugs to improve weight-loss results. The company aims for this study to further enhance the results of its Allurion program in achieving optimal muscle mass. Following the announcement, Allurion stock gained 21% on Wall Street, while it surged around 70% in after-market trading.
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What is Allurion Gastric Balloon Treatment?
Allurion’s famous gastric balloon treatment is a non-surgical weight-loss solution that limits food intake by inserting a balloon into the stomach. Overall, the Allurion program combines a gastric balloon with behavioral coaching to deliver fast, sustainable weight loss.
Meanwhile, GLP-1 medications are used to reduce blood sugar and support weight loss.
Allurion to Optimize Muscle Mass with GLP-1 and Balloon
With this new study, Allurion is looking at optimizing the muscle mass among patients. The company pointed out that GLP-1 usage has been linked to significant muscle mass loss in some studies. However, patients using the gastric balloon were able to maintain and even grow their muscle mass.
Additionally, the company highlighted that muscle loss remains a major concern in the GLP-1 space. Nonetheless, the company believes that the combination of Allurion Balloon and Virtual Care Suite with GLP-1 therapy could be a valuable enhancement and, if successful, may set a new benchmark in obesity treatment.
In terms of GLP-1 medications, Novo Nordisk (NVO) sells semaglutide under the brand names Ozempic and Wegovy. Similarly, Eli Lilly (LLY) sells tirzepatide as Mounjaro and Zepbound.
Is Allurion Technologies a Buy or Sell?
Earlier this month, analyst Josh Jennings at TD Cowen reiterated his Buy rating for ALUR stock, predicting a solid upside of over 300%. Jennings is bullish on the stock based on the company’s promising weight loss treatment, which could further gain commercial traction.
As per the consensus rating on TipRanks, ALUR stock has received a Moderate Buy rating, based on one Buy and one Hold recommendation. The Allurion Technologies share price forecast is $16.0, which is 332.4% above the current trading level.
