A bat­tered Zaf­gen seeks strate­gic op­tions, proph­esy­ing on­go­ing study will un­like­ly lift FDA hold on di­a­betes drug

Zaf­gen, which back in 2015 crossed the $50 mark, is now firm­ly in pen­ny stock ter­ri­to­ry. Blight­ed by safe­ty con­cerns across a range of its ex­per­i­men­tal drugs, the Boston drug de­vel­op­er is now seek­ing strate­gic op­tions, in­clud­ing a pos­si­ble sale — pre­dict­ing da­ta from the on­go­ing in vi­vo study for its di­a­betes drug will not be enough to con­vince the FDA to lift its clin­i­cal hold on the pro­gram.

The com­pa­ny’s shares $ZFGN tum­bled more than 15% to 69 cents in ear­ly Thurs­day trad­ing.

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