Leerink Partners Comments on Zafgen (ZFGN) Following Patient Death
Leerink Partners analyst Joseph Schwartz weighed in on Zafgen (NASDAQ: ZFGN) after the company announced a patient death in the ongoing Phase III bestPWS study of beloranib in Prader-Willi Syndrome (PWS).
"This news, while negative, resolves the uncertainty and speculated negativity that have led to significant downward pressure on the stock," he said. "According to mgmt., the event was reported to the US FDA and the Agency has since initiated a discussion with the company. ZFGN is working with the FDA to expedite a review and to understand the event more fully, and how these revelations may impact the conduct of the trial going forward. Mgmt. anticipates providing an update as the discussions progress with the Agency. "
While clearly a negative, the analyst said prudent to await clarity.
The firm has an Outperform rating and price target of $56 on the stock.
For an analyst ratings summary and ratings history on Zafgen click here. For more ratings news on Zafgen click here.
Shares of Zafgen closed at $15.75 yesterday.