Pomerantz LLP is investigating claims on behalf of investors of Zafgen, Inc. ("Zafgen" or the "Company") (NASDAQ: ZFGN). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Zafgen and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On November 26, 2018, Zafgen announced receipt of a letter from the U.S. Food and Drug Administration ("FDA") placing a clinical hold on the Investigational New Drug Application for its first U.S. clinical trial of ZGN-1061, the Company's second-generation, investigational MetAP2 inhibitor currently in development for the treatment of type 2 diabetes. Zafgen stated that "[t]he FDA cited the possibility of cardiovascular (CV) safety risk based on the Company's prior compound and outlined multiple potential paths for moving forward, including nonclinical or clinical options, to address these concerns in the ongoing development of ZGN-1061", and further advised investors that "[t]he Company plans to assess these options and request a Type A meeting with the [FDA] to discuss next steps with the program."
Following this disclosure, Zafgen's stock price fell $3.69 per share, or 40.55%, to close at $5.41 per share on November 26, 2018.