Allurion Technologies shares catapulted Friday after the medtech company said it plans to test its weight-loss technology in combination with an obesity drug.
Allurion makes a gastric balloon that, when swallowed and inflated, limits the amount of space the stomach has for food. The company combines its balloon with an AI-powered "health coach" called Iris. The balloon passes out of the body naturally after about four months.
Now, Allurion says it will test this regimen in combination with a GLP-1 drug to see if it can improve the composition of weight lost.
Drugs that mimic the GLP-1 hormone can help improve feelings of satiety and blood glucose markers. Novo Nordisk sells the only approved GLP-1 drug for weight loss, Wegovy. Eli Lilly's Zepbound mimics GLP-1 and another hormone called GIPR.
Allurion stock skyrocketed132.2% to close at 8.59. In premarket trades, shares had catapulted nearly 400%.
Allurion Stock's Comeback?
Allurion said weight-loss drugs, alone, often lead to a loss in lean mass. Lean mass includes muscle, bones, organs and water. This can worsen a person's overall body composition. It's important to note, other means of weight loss — like surgery or diet and exercise — also lead to lean mass loss.
But Allurion is hoping to change that.
In one study, patients treated with the Allurion Balloon gained 5.6% in lean body mass while losing 14% of their total body weight over four months. In a smaller study, patients who used the balloon had a weight reduction of 15.7% with no change in muscle mass.
The combination of Allurion's balloon and GLP-1 drugs "could become the gold standard for obesity care," Allurion Chief Executive Shantanu Gaur said in a written statement.
Allurion stock went public in 2021. At the time, it traded above 240. Shares topped 270 in 2023. But Allurion shares have fallen dramatically in the years since. On Thursday, it closed below 4. But, on Friday, Allurion stock retook its 50-day moving average in massive volume.
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