Yahoo Finance Allurion (ALUR) Unveils Positive Data for Its Balloon Therapy
Allurion Technologies, Inc ALUR recently announced three scientific presentations at the American Society for Metabolic and Bariatric Surgery Annual Meeting. One of the studies highlighted the success of the company’s gastric balloon technology for weight loss.
The company plans to release data from a study that examined 1,313 patient interactions with Coach Iris, its AI-powered weight reduction coach. Researchers examined the general quality, accuracy, and safety of a 2023 beta version. Moreover, 84% of respondents were satisfied with integrity, 79% with accuracy, 89% with safety, and 95% with tone from Coach Iris.
More on the Data
Per data from a study of 121 individuals treated with two consecutive, four-month courses of Allurion balloon therapy at 11 obesity centers lost an average of 22.1% of their body weight after a year. Comparatively, data indicates that individuals who underwent 12-month endoscopic intragastric balloon therapy lost 15.4% and 16.2% of their total body weight.
Evidence from multiple studies also suggested that Allurion's balloon had a lower intolerance rate than 12-month endoscopic balloons. The overall serious adverse event rate of the procedure-less, liquid-filled balloon is significantly lower than that of other liquid-filled balloons on average.
These findings showcase the potential of the Allurion Balloon to deliver superior outcomes compared to other intragastric balloons, approaching those of weight loss surgery, for patients seeking effective and safe weight loss solutions.
Working and Features of the Allurion Gastric Balloon
Allurion develops a gastric balloon for facilitating the process of weight loss among individuals. The balloon is swallowed as a capsule under the guidance of a certified healthcare professional. It does not require surgery or endoscopy. However, in rare cases, the Allurion Balloon may require endoscopic or surgical intervention for removal.
Once swallowed, the balloon fills and takes up space in the stomach, helping in controlling appetite and thus facilitating weight loss. Approximately four months after placement, a time-activated release valve opens, allowing the balloon to empty and pass naturally through the gastrointestinal tract.
The balloon is crafted to the shape of the stomach, which ensures a snug fit. It is made from polyurethane, which is thinner and more flexible and ensures comfort as the stomach moves.
Industry Prospects
Per a report by Grand View Research, the global weight management market size was valued at $142.6 billion in 2022 and is expected to witness a growth rate of 9.9% from 2023 to 2030.
The market growth can be attributed to the rising volumes of bariatric surgeries, rapid adoption of online weight loss & management programs, growth in disposable income levels in developing countries, increasing government initiatives for creating awareness about weight management, and growing cases of obesity due to sedentary lifestyles.
Given the market potential, Allurion’s gastric balloon technology is likely to boost the company’s business and generate additional revenues.
Price Performance
For the past six months, ALUR’s shares have plunged 60.7% against the industry’s rise of 5.9%. The S&P 500 increased 8.9% in the same time frame.
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Zacks Rank & Other Stocks to Consider
ALUR carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space that have announced quarterly results are DaVita DVA, Ecolab ECL and Boston Scientific Corporation BSX.
DaVita, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 44% compared with the industry’s 20.4% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 7.5%.
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