Zafgen Up 6% After Weight Loss Drug Has Positive Late-stage Trial Results

Zafgen Inc. shares rose 6.4% Monday morning after the company presented positive late-stage data for its drug intended to treat obese patients with type 2 diabetes. The company presented data over the weekend showing the drug, beloranib, met its primary endpoint and was associated with multiple improvements in body composition, including a significant decrease in body weight and fat mass. In a note Monday rating the company outperform, RBC Capital Markets analyst Simos Simeonidis said that though the data was "very impressive," the drug is on hold with the Food and Drug Administration - and has been since December - until the company can address risk of blood clots in patients, which it submitted a plan for the FDA to review. "What is not clear is whether there is a path forward for this drug, according to the agency," Simeonidis said.