Allurion Technologies Raises $100 Million in IPO to Support Global Expansion of Weight Loss Platform

Dec 22, 2023

Allurion Technologies, a Massachusetts-based company, has made its debut on the stock market after raising $100 million in its initial public offering (IPO). The funds will be used to support the worldwide commercialization of Allurion’s weight loss platform, which includes a medical device and software, as well as to continue clinical testing for FDA submission in the United States.

Allurion’s technology is a gastric balloon in the form of a capsule that patients swallow. The balloon inflates in a quick 15-minute outpatient procedure, allowing patients to feel fuller and eat less over a four-month period. The platform also includes a scale, watch, and mobile app that monitor weight loss using artificial intelligence and machine learning techniques.

The technology, which has been approved in multiple countries, is indicated for people with a body mass index greater than 27, representing a significant market size outside of the United States. Since its introduction to the market, over 100,000 people in more than 50 countries have been treated with the Allurion system. Post-marketing research has shown that patients lose an average of 15% of their weight after four months.

Despite the high demand for obesity drugs like Novo Nordisk’s Wegovy, Allurion’s CEO, Shantanu Gaur, believes there is still a massive opportunity in the market. Gaur points out that many patients either do not start or discontinue drug treatments, leaving a large portion of the population without effective weight loss options. Gaur sees the increasing awareness about obesity and weight loss as a major advantage for Allurion’s business.

In addition to its plans for global expansion, Allurion has recently formed a commercialization alliance with Medtronic, a leading medical device company, to expand its reach in Central and Eastern Europe, the Middle East, and Africa. Allurion is also exploring partnerships with large pharmaceutical companies to further enhance the patient experience by developing a fully automated coach that can provide nutritional guidance and support.

Allurion is currently conducting a clinical trial in the United States with a target enrollment of 1,000 patients. The trial aims to demonstrate the effectiveness of the gastric balloon in helping patients achieve weight loss goals and to compare its results to lifestyle interventions.

The success of Allurion’s IPO and the support from various investors will enable the company to accelerate its commercialization efforts, invest in research and development, and potentially tap into additional funding sources to further expand its capabilities and reach.