There’s a very strange situation going on today with Zafgen, the small biotech company that’s been developing a very unusual compound as an appetite/obesity therapy. I’ve mentioned them several times over the years (more links in that post), because it’s a very interesting story.
Unfortunately, it’s just gotten a lot more interesting, and not in a good way. The company has canceled two presentations on its progress, without warning or explanation. So far today, all attempts to get the company to comment have been futile, and investors are getting increasingly worried and impatient at the silence. The company’s stock spent yesterday sliding about 40%, and although it’s flat today (after a nasty open), it’s not because anything has come out to reassure anyone. You’d have to think that they’re getting ready to inform investors of some big hunk of material information, presumably something from the clinic, but when is that going to emerge?
Update: I spoke too soon. At 3:30 EST, with still no announcement of any kind, Zafgen stock is down about 27%.
Update 2: Today (October 14) the company has now disclosed a patient death in one of its clinical trial treatment groups. Cause unknown, and under investigation. Mystery (to one approximation) solved, but the bigger question remains.