Zafgen to scrap lead obesity drug, shares slide

(Reuters) – Zafgen Inc said it was suspending the development of its lead obesity drug, beloranib, more than six months after the U.S. Food and Drug Administration asked the company to halt all tests on the drug following the death of two patients. Zafgen’s shares tumbled more than 40 percent in extended trading on Tuesday after the company also said it would reduce its workforce by about 34 percent to 31 employees by December. The FDA has approved drugs made by Vivus Inc, Orexigen Therapeutics Inc and Arena Pharmaceuticals Inc in the past few years, but asked for additional studies to check for safety of these drugs.

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Zafgen to scrap lead obesity drug, shares slide