Beloranib's prospects remain unclear despite Zafgen's conference call
The prospects for obesity candidate beloranib are not any clearer, even after Zafgen Inc. broke its week-long virtual silence with a Friday conference call to explain a partial clinical hold to investors. After a week fueled by rumors and speculation, initially triggered by a steep stock decline on no news, Zafgen is down 70% and trading barely above cash.
On Monday, the stock plummeted $12.25 (36%) to $22.15 on heavy volume amid general media reports that Zafgen had pulled out of non-road show investor meetings. As speculation mounted, and with no word from the company, the shares shed an additional $6.40 (29%) to $15.75 on Tuesday, again on heavy volume.