Shares Of Zafgen (ZFGN) Fell 60% after reporting another patient death for its Obesity trial. The obesity trial is being turn to treat patients with a rare disease known as Prader-Will Syndrome. This syndrome causes the ability for patients to be hungry all the time, which causes the foundation for long-term obesity. 

Zafgen's drug, beloranib, is used to stop patients from experiencing unrelenting hunger. The problem reported today was that a patient had died from a blockage of an artery in the lung. This comes two months after another patient death had occurred in the same trial. The problem with the first patient death is that nobody knows the cause. 

In light of the first death the FDA had placed the trial on a partial clinical hold, citing previous blood clotting behaviors in both current and completed studies. It is not clear what will happen right now after this new development but Zafgen is in discussions with the FDA to discuss the next steps for the trial. It will be up to the FDA to determine the next course of action for the drug.

This means that it will decide if the drug should be completely halted pending further investigation or if it should continue as normal. Whatever the case may be, a lot of investors are not sticking around. That has been evident by today's 60% drop. I would say to stay away from the name for a few days as a bounce could potentially happen, but not for a few days. 

Arena Pharmaceuticals (ARNA), Orexigen (OREX), and Vivus (VVUS) all have had their obesity drugs approved by the FDA, but they all have to run safety trials. This is to determine if such high-risk obesity drugs do not affect the cardiovascular system of patients.