Zafgen Inc (NASDAQ:ZFGN) Shares Down Big Again in Pre-Market After Patient Death

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Zafgen Inc (NASDAQ:ZFGN) shares which tumbled more than 60% yesterday after the company announced that a second patient had died during clinical trials for their obesity drug, beloranib, is down another $0.64 or 10.19% in pre-market trading this morning. While Zafgen Inc (NASDAQ:ZFGN) only has this one drug in their pipeline, they do have close to $200 million in cash after paying off debt, so there is certainly value still within the company.

“We remain committed to advancing beloranib as a potential new therapy for this underserved patient population,” CEO Thomas Hughes said in a statement.
The stock decreased 60.58% or $9.65 during the last trading session, hitting $6.28. Approximately 26,558 shares traded hands. ZFGN shares have declined 79.82% since April 30, 2015 and are currently downtrending. It has underperformed the S&P500 by 79.62%.

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 which is 521.02% above today’s ($6.28) 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 in their 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 $433.85 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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