Zafgen’s (NASDAQ:ZFGN) Obesity Drug Claims Second Life, Shares Plummet

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Zafgen Inc (NASDAQ:ZFGN) shares are down big in pre market trading this morning after reports indicate that a second patient who had been treated with the company’s experimental drug for obesity, beloranib, has passed away. Shares are down a staggering 56.69% or $9.00 in pre market trading as investors eagerly sell off their stakes. Considering that the drug beloranib is the only current drug in Zafgen Inc.’s (NASDAQ:ZFGN) pipeline, the fact that two deaths have been link to its clinical trials, certainly does not look bright for the company.

Both patients died due to blood clots in their lungs. The FDA had placed a partial clinical hold on the drug back in October following the first patient’s death.The stock decreased 5.80% or $0.98 during the last trading session, hitting $15.93. Approximately 208,255 shares traded hands. ZFGN shares have declined 51.54% since April 29, 2015 and are currently downtrending. It has underperformed the S&P500 by 51.34%.

From a total of 7 analysts covering Zafgen Inc (NASDAQ:ZFGN) stock, 6 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 86% of the ratings are positive. The highest target price is $60 while the lowest target price is $25. The mean of all analyst targets is $39 with a 144.82% above today’s ($15.93) stock price. Zafgen Inc was the topic of 7 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. Canaccord Genuity maintained shares on November 13 with a “Buy” rating. Cowen & Co maintained shares with a”Buy” rating and a $60 target share price their a report from an August 25. JMP Securities downgraded ZFGN stock in a recent report from October 19 to a “Mkt Perform” rating. Finally, RBC Capital Markets maintained the stock with a “Outperform” rating in a report they issued on an October 15.

Zafgen, Inc. is a biopharmaceutical company. The company has a market cap of $484.83 million. The Firm is engaged in improving the health and well-being of patients affected by obesity and complex metabolic disorders. It currently has negative earnings. The Company’s lead product candidate, Beloranib is a twice-weekly subcutaneous injection being developed for the treatment of multiple indications, including severe obesity in two rare diseases, Prader-Willi syndrome (PWS) and hypothalamic injury-associated obesity (HIAO), including craniopharyngioma-associated obesity, and severe obesity.

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