Zafgen (ZFGN) PT Cut to $48 at FBR Capital on Patient Death

FBR Capital analyst Christopher James lowered his price target on Outperform Zafgen (NASDAQ: ZFGN) to $48.00 (from $60.00) following news of a patient death in its Phase III bestPWS study of beloranib in Prader-Willi syndrome (PWS). The firm maintained an Outperform rating.

James commented, "We spoke with management following the news and provide a few key takeaways: (1) the cause of the unfortunate death remains unknown, and Zafgen remains blinded to the safety and efficacy data; (2) at this time, the PWS and severe obesity studies are still ongoing and remain on track to report data; (3) based on an annual death rate of 3% in this population, one to two patients would be expected to expire in a study of this size; (4) Zafgen is in active discussions with the FDA to determine the impact of the death on the ongoing trials; and (5) although deemed not drug related, we remind investors of two thrombotic events in the ZAF-201 study. Given the additional uncertainty particularly around the study arm where the death occurred, we are lowering our price target from $60 to $48 and maintaining our Outperform rating on the shares. That said, we view the potential adjudication of the death to placebo arm as a significant positive future catalyst for ZFGN."

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 $19.50 yesterday.

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