NATICK, Mass. – Allurion Technologies, Inc. (NYSE:ALUR), a medical technology firm focused on obesity treatment with a current market capitalization of approximately $30 million, announced today that it has received approval from the New York Stock Exchange for its plan to regain compliance with the exchange's listing standards. The company now has until March 1, 2026, to meet the NYSE's Minimum Market Capitalization Standard. According to InvestingPro data, ALUR's stock has declined by about 90% over the past year, highlighting the urgency of this compliance initiative.
The acceptance of the compliance plan marks a positive step for Allurion, which is working towards satisfying the NYSE's continued listing criteria. While the company maintains impressive gross profit margins of 73%, InvestingPro analysis indicates significant financial challenges ahead. "We are pleased to have reached this milestone in collaboration with the NYSE," stated Dr. Shantanu Gaur, Founder and CEO of Allurion. He added that the company is committed to executing its plan to enhance shareholder value.
Allurion is known for its Allurion Program, a non-surgical weight loss solution that includes the Allurion Gastric Balloon, currently under investigation in the U.S. The program also provides the Allurion Virtual Care Suite, which supports both consumers and healthcare providers with tools like a mobile app and connected scale, and features the Coach (NYSE:TPR) Iris AI Platform for personalized health coaching.
The company's compliance plan was submitted following the NYSE's indication that Allurion was not meeting the Minimum Market Capitalization Standard, a common requirement for companies listed on the exchange. With the NYSE's acceptance, Allurion has been granted an extension to address this issue and work towards regaining full compliance. InvestingPro data reveals the company operates with a significant debt burden and is rapidly burning through cash, with negative free cash flow of approximately $51 million in the last twelve months.
The forward-looking statements in the press release indicate Allurion's management believes in the company's potential to satisfy the NYSE's standards and continue its commercial success. However, they also acknowledge the risks and uncertainties inherent in the medical technology industry, including regulatory approvals, market conditions, and intellectual property defense.
This news is based on a press release statement from Allurion Technologies, Inc. and reflects the company's current plans and expectations regarding its compliance with the NYSE's listing standards.
In other recent news, Allurion Technologies has experienced significant changes in its financial landscape. The company's third-quarter revenue for 2024 was reported at $5.4 million, a decrease from the previous year due to a product recall in France and other market pressures. Allurion has also revised its full-year 2024 revenue guidance to fall between $30 million and $35 million. Despite these challenges, TD Cowen maintains a Buy rating for Allurion, highlighting the company's strategic plan to enhance its commercial performance and significantly cut operating costs.
In addition, Allurion has announced the year-end release of the Audacity study results, which are anticipated to provide crucial data that could influence the company's future direction. Chardan Capital Markets, however, has downgraded Allurion's stock from Buy to Neutral due to a pattern of underwhelming business performance. The firm acknowledges the potential positive outcome of the Audacity study but expresses concerns about Allurion's execution.
In other recent developments, Allurion plans to cut its operating expenses by half and reduce its workforce by 50% by 2025. The company's Virtual Care Suite is gaining traction, a factor expected to contribute to future revenue growth. These are recent developments, and investors and industry observers are eagerly awaiting the end-of-year Audacity study results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.