A battered Zafgen seeks strategic options, prophesying ongoing study will unlikely lift FDA hold on diabetes drug

Zafgen, which back in 2015 crossed the $50 mark, is now firmly in penny stock territory. Blighted by safety concerns across a range of its experimental drugs — the Boston drug developer is now seeking strategic options, including a possible sale — predicting data from the ongoing in vivo study for its diabetes drug will not be enough to convince the FDA to lift its clinical hold on the program.