Zafgen Surges as New Drug Findings May Help Restart FDA Review
- Stock rose as much as 111%, biggest intraday gain ever
- Drug was suspended in December after 2 patient deaths
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Zafgen Inc. surged after its experimental obesity drug successfully lowered patients’ weight and excessive food-seeking behaviors, findings that could restart the regulatory approval process that was suspended last year after the deaths of two patients.
The positive results may help the biotechnology firm persuade the U.S. Food and Drug Administration to release its hold on the drug application for beloranib, Chief Executive Officer Tom Hughes said in a telephone interview. The drug is in a trial to treat a rare genetic disease called Prader-Willi syndrome that causes overeating.