Shares of Zafgen Inc. plummeted in the extended session Tuesday after the tiny biotech company said it was shifting resources from one of its obesity drug candidates to another more promising one. Zafgen shares fell 41% to $4.01 after hours. The company said it would no longer invest resources in developing its drug beloranib, studies of which were placed on a clinical hold by the Food and Drug Administration in December, and shift focus to another drug candidate named ZGN-1061. “Zafgen has determined that the obstacles, costs and development timelines to obtain marketing approval for beloranib are too great to justify additional investment in the program, particularly given the promising emerging profile of ZGN-1061,” the company said in a statement. When beloranib had been placed on clinical hold, the company was already enrolling patients in late-stage clinical trials. The company said it would start enrolling patients in early stage clinical trials for ZGN-1061.
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