Little-known medical device firm Allurion (NYSE:ALUR) — which is focused on ending obesity via its swallowable and “procedure-less” intragastric balloon — saw its shares skyrocket on Thursday. Earlier this morning, management announced the commercial availability of its comprehensive Virtual Care Suite (VCS) in the U.S. ALUR stock likely benefited from rising interest in anti-obesity treatments.
According to the company’s press release, the VCS is a dynamic weight-loss management suite powered by artificial intelligence (AI). Under one digital umbrella, the suite features remote patient monitoring, telehealth and care team collaboration. Last year, Allurion added Coach Iris, a 24/7 AI-powered weight-loss coach, to the VCS. This feature enables automated, conversational coaching along with a more tailor-made approach to encouraging positive behavioral changes.
Fundamentally, ALUR stock appears to have jumped based on the underlying force multiplication. With the AI-powered digital suite, Allurion can help support patients utilizing bariatric surgery, weight-loss devices or anti-obesity drugs such as GLP-1s.
Notably, healthcare providers in over 50 countries have already utilized the VCS, possibly contributing to the excitement over ALUR stock.
Anti-Obesity Focus: Another Catalyst for ALUR Stock
One of the key catalysts for ALUR stock centers on what Axios termed an obesity drug boom. In particular, “U.S. demand for the drugs, known as GLP-1 agonists, exceeded supply in 2023, and some analysts predict the market could surpass $150 billion a year within a decade.”
Moreover, the matter represents a national health crisis. Per the report, almost 115 million U.S. adults and children are obese. Further, some studies reveal that the drugs may make patients healthier. Some of the secondary benefits include the reduction of heart failure symptoms. As a result, there’s a greater chance for broader uptake.
Notably, primary care doctors typically have little training in obesity. Therefore, it’s possible that Allurion can fill a critical care gap. By improving patient outcomes, the company should be able to enhance its relevance.
Why It Matters
Significantly, two analysts cover ALUR stock, both assigning a buy rating on the underlying enterprise. As well, both experts pegged a $5 price tag, implying nearly 39% upside potential. Finally, the spike in Aluurion came at the right time, as the security was getting uncomfortably close to the $1 exchange minimum.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
