Strong debut for Zafgen

|By:, SA News Editor

Shares of new IPO Zafgen (ZFGN +1.2%) currently exchange hands for 24% above yesterday's offering price of $16 giving it a market cap of $430M. The company's lead product is beloranib, in Phase 2 clinicals to evaluate its safety and efficacy as a treatment for obesity.

The company has yet to produce any revenue. The IPO increased its cash and cash equivalents stake to ~$126M. It has spent ~$6M/year over the past three years developing beloranib. Operations consumed $15M in cash last year.

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