Allurion Technologies ALUR shares are moving higher Friday, potentially in response to the company's Thursday announcement of a planned clinical study to evaluate the combination of its Allurion Program with GLP-1 agonists.

What To Know: The company highlighted concerns surrounding muscle loss associated with GLP-1 treatments, which have been shown to reduce lean mass by approximately 40% of the total weight lost. Allurion cited prior studies demonstrating that its gastric balloon, combined with its Virtual Care Suite, has helped patients lose weight while maintaining or even increasing muscle mass.

Dr. Shantanu Gaur, CEO of Allurion, stated that the planned study aims to confirm whether the combination of the Allurion Balloon and Virtual Care Suite with GLP-1 therapy can offer a more metabolically healthy weight loss approach. If successful, the company believes it could position the Allurion Program as a leading option in obesity treatment.

What Else: The company has also announced it has entered into a securities purchase agreement to raise approximately $7.4 million in gross proceeds. The agreement involves the sale of 1.24 million shares of its common stock at $6.00 per share in a registered direct offering priced at-the-market under NYSE rules. The company also plans to reprice warrants issued in its July 2024 offering to $6.00 per share after obtaining shareholder approval.

Roth Capital Partners is acting as the exclusive placement agent for the offering. The company expects to use the net proceeds for working capital and general corporate purposes. The offering is set to close on or around Jan. 27, 2025, pending customary closing conditions.

Price Action: Allurion shares were up 120% at $8.15 at the time of publication Friday, according to Benzinga Pro.

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This illustration was generated using artificial intelligence via Midjourney.