NEW YORK (TheStreet) -- Shares of Zafgen (ZFGN) are soaring 12.77% to $7.56 on heavy trading volume Monday morning as the company announced positive data from its phase 3 trial evaluating the safety and efficacy of its obesity drug beloranib.
The six-month trial evaluated the drug in patients with Prader-Willi syndrome (PWS), a genetic disorder that causes obesity.
The results showed that beloranib was associated with improvement in total cholesterol, LDL cholesterol and other cardiometabolic risk factors, and showed a reduction in fat mass when compared to a placebo, according to a company statement on Sunday.
"These data further support the efficacy profile of beloranib in PWS...We believe these data also provide greater perspective on the benefit/risk relationship of beloranib in this high-risk patient population and we look forward to discussing these results with the FDA," CEO Thomas Hughes stated.
The Boston-based biopharmaceutical company focuses on the development of therapeutics for patients suffering from obesity and obesity-related disorders.
About 3.52 million of Zafgen's shares were traded by this morning, higher than its average volume of 770,218 shares per day.