Zafgen shares fell to a new low on Wednesday after the company said it has concluded a review of its assets and clinical programs, taking into account feedback from regulatory authorities, and is refocusing on development of a differentiated second-generation MetAP2 inhibitor in severe and complicated obesity. ZFGN was down over 51% at $3.28 recently, having earlier traded as low as $3.23. The 52-week high is at $47.98.
Following its discussions with the U.S. Food and Drug Administration and review of other considerations, Zafgen said it has determined the obstacles, costs and development timelines to obtain marketing approval for beloranib are too great to justify additional investment in the program, particularly given the promising emerging profile of ZGN-1061. The company is therefore suspending further development of beloranib in order to focus its resources on ZGN-1061.
Zafgen is currently screening patients to initiate a phase 1 clinical trial evaluating ZGN-1061 for safety, tolerability, and weight loss efficacy over four weeks of treatment, and currently expects Phase 1 clinical data by the end of Q117.
