NEW YORK (TheStreet) -- Shares of Zafgen (ZFGN) - Get Zafgen Inc. Report are tumbling 11.02% to $5.73 on heavy trading volume late Thursday afternoon following the release of its 2015 fourth quarter results.
After yesterday's closing bell, the Boston-based biopharmaceutical company posted a net loss of 85 cents per share, wider than the loss of 80 cents per share that analysts were expecting.
"Beloranib, our lead product candidate, represents the first investigational drug to demonstrate, in a Phase 3 clinical trial in PWS, a positive impact on body weight and hyperphagia," CMO Dennis Kim said in a statement.
Prader-Willi Syndrome (PWS) is a genetic cause of morbid obesity in children.
Additionally, Leerink lowered its price target on the stock to $6 from $7 and maintained its "market perform" rating.
Its FDA submission of safety assessment and risk mitigation strategy for its beloranib drug will reportedly occur in the coming months, the firm noted.
"This submission is ZFGN's top priority, and management reiterated that ZFGN's clinical teams continue to accumulate body of evidence from ongoing surveys, literature review, insurance databases to characterize thrombosis risk factors in PWS and background VTE-related mortality rate," Leerink said in an analyst note.
Although the firm remains convinced by Zafgen's diligence in this regard, it remains "frustrated" that the timing for submission continues to be vague.
About 1.25 million of the company's shares were traded by this afternoon vs. its average volume of 930,163 shares per day.