By Colin Kellaher
Shares of BioAge Labs plunged nearly 70% in premarket trading Monday after the clinical-stage biopharmaceutical company said it was ending a mid-stage study of its lead program, a proposed obesity drug, due to safety concerns.
After the closing bell on Friday, BioAge said it is discontinuing a Phase 2 study of azelaprag after some participants developed liver transaminitis, a condition where the levels of liver enzymes in the blood are higher than normal.
The Richmond, Calif., company said it is assessing its next steps for the azelaprag program, adding that it will continue to advance its earlier-stage programs.
On the heels of the news, Citi downgraded BioAge's shares to neutral from buy and slashed its price target on the stock to $7 from $45.
In a research note, Citi analysts Samantha Semenkow and Geoff Meacham said they believe the liver signal limits azelaprag's path forward in obesity, and that they see limited near-term upside for the stock.
However, Citi said BioAge's pipeline, discovery platform and cash runway to at least 2029 have the potential to be longer-term tailwinds.
BioAge shares, which closed Friday at $20.09, were recently down 69% at $6.15 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 09, 2024 06:28 ET (11:28 GMT)
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