Zafgen, Inc. (NASDAQ: ZFGN)
Zafgen, Inc. (ZFGN), a biopharmaceutical company yesterday announced positive results from their best PWS ZAF-311 Phase 3 trial. The study was a pivotal, double blind, placebo controlled phase 3 trial evaluating the safety and efficacy of beloranib. Beloranib is a MetAP2 inhibitor used for treatment in patients with Prader-Willi syndrome (PWS). The trial reached its co-primary endpoints, and showed statistically significant reduction in body weight and hyperphagia-related behaviors. This is the first drug to show a positive impact in both of these PWS related issues.
Zafgen, Inc. CEO’s Comments
“This clear efficacy outcome is a crucial first step in moving discussions forward with the Food and Drug Administration regarding continued development of beloranib,” stated Thomas Hughes, Ph.D., Chief Executive Officer of Zafgen. “While we take the previously reported adverse events very seriously, we now have the robust data to provide greater perspective on the benefit/risk relationship of beloranib in this high-risk patient population. We thank our investigators, and the patients and their families for participating in the bestPWS ZAF-311 clinical trial.” Globe Newswire
ZFGN Technical Analysis
ZFGN gapped up in price yesterday to $7.46, up from the prior day’s close of $5.62, which is a 33% increase in price. Taking a look at the daily chart, we can see the last time ZFGN traded above this price level was on December 1st when it traded at $15.93. On that occasion ZFGN tanked all the way to $6.28 on the next day of trading a 61% drop in price. Taking a further look down the daily chart we can see that ZFGN has been on an overall decline dating back to September 18th when it traded at $46.23. ZFGN has an extremely wide range as its 52 week high price is $55.36. Meaning that any sustained move up has significant room for growth. ZFGN has a low float of 20.65 million shares and is trading 5 times the normal daily trading volume. ZFGN reached pre market highs of $10.55, but gave back $3.09 at the open, or equivalent to 29%. For trading purposes, my entry point would have been $7.50 looking for a run to $10. My stop loss would have been $7.30, fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Zafgen, Inc., a biopharmaceutical company, focuses on the development of therapeutics for patients suffering from obesity and obesity-related disorders. Its lead product candidate includes Beloranib, an injection, which is in Phase III clinical trials for the treatment of obesity and hyperphagia in Prader-Willi Syndrome patients; that has completed Phase II clinical trials for the treatment of hypothalamic injury-associated obesity, including craniopharyngioma-associated obesity; and which is in Phase IIb clinical trials for the treatment of severe obesity in the general population. The company is also developing ZGN-839, a methionine aminopeptidase 2 inhibitor, which is in preclinical studies to reduce the severity of nonalcoholic fatty liver disease, nonalcoholic steatohepatitis, and abdominal obesity. Zafgen, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts. Yahoo Finance
