Altimmune (NASDAQ:ALT) shares dropped Tuesday after Kerrisdale Capital said it is short the company's shares.
Investors in the pharmaceutical company "are in for a rude awakening," claims Kerrisdale. They argue that "a deeper examination of Altimmune's data reveals its drug has "little chance of competing against either the approved incumbents or the other GLP-1 agonists progressing through clinical trials."
"We don't think legitimate prospective partners want to spend hundreds of millions of dollars and years of trials pursuing an obvious dead end," the firm claims.
The short-seller also took aim at the company's management in its note, claiming they will struggle to get an edge over Novo Nordisk or Eli Lilly.
ALT shares are currently down more than 14% at $9.90 per share. The stock initially fell as low as $8.38.