Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Zafgen To Explore Strategic Options, With No Near-Term Resolution For Diabetes Drug

Courtesy of Benzinga

Clinical-stage biopharma companies often face the risk of running out of cash reserves to fund their operations until they can push their investigational assets out of the clinics into the commercialization stage.

After Abeona Therapeutics Inc (NASDAQ: ABEO) opted to explore strategic options earlier in the week, one more biotech has made a similar announcement.

What Happened

Zafgen Inc (NASDAQ: ZFGN), a micro-cap biopharma, announced Thursday morning it plans to explore strategic options to maximum shareholder value.

The strategic alternatives being evaluated include an acquisition, merger, business combination, in-licensing or other strategic transaction involving the company and its assets.

Late last year, the FDA had placed a clinical hold on the development of Zafgen’s ZGN-1061, a MetAP2 inhibitor that is being evaluated for Type 2 diabetes, citing cardiovascular risk. The stock shed roughly 40% of its value in reaction to the development.

Subsequently, on May 30, when the company made an announcement concerning the minutes of a Type A meeting it had with the FDA to discuss a resolution to the clinical hold, the stock plunged to a record low.

In July, the company reached an agreement with the FDA on an in vivo animal study design and protocol to establish relevant safety margins for ZGN-1061.

Based on the preliminary results from the study, the company now said it does not presently expect the data to warrant resolution of the clinical hold for ZGN-1061.

Cash to Last More Than 2 Years

Zafgen said its projected cash runway is likely to last greater than two years, thanks to its previously announced and recently implemented plans to reduce operating expenses and prioritize key resources.

MTS Health Partners has been retained as exclusive advisor to assist the company in exploring alternatives.

In pre-market trading Thursday, Zafgen shares were sliding 11.79% to 72 cents.

Related Links:

Biotech Stock On The Radar: Ardelyx Gears Up For FDA Decision Day

The Daily Biotech Pulse: Cheery Results For Sage’s Depression Drug, UniQure Offering, Axsome Aces Study Of Headache Drug

Posted-In: Biotech News FDA


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!