Death Of Another Patient Causes Zafgen's Shares To Plunge

In a report issued by the Wall Street Journal, Zafgen Inc ZFGN announced a patient fatality in the company’s beloranib study.

News of this event has crushed shares of the company, with Zafgen trading at a 57 percent discount in premarket trading to it close on Tuesday.

Anne Steele, a contributor for the Wall Street Journal, wrote, “The biopharmaceutical company said it learned Tuesday that a patient being treated with beloranib for Prader-Willi syndrome was diagnosed with bilateral pulmonary emboli—blood clots to the lung—and died...The patient was receiving the drug during the open-label extension portion of the late-stage trial, which hadn’t been halted.”

Related Link: Zafgen Controversy Means Stock Is Worth $25, Notes SunTrust

Not An Isolated Incident

This isn't the first time a patient has died in Zafgen’s beloranib study. Back in October, a patient passed away for unknown causes; subsequently the FDA put beloranib on partial clinical hold.

Zafgen’s CEO Thomas Hughes released a statement saying, “Our thoughts are with the patient and their family at this time. Patient safety remains our top priority, and we are investigating the circumstances around this event.”

Shares of Zafgen last closed at $15.93.

During pre-market trading on Wednesday, the stock priced at $6.69.