(Reuters) Biopharmaceutical company Zafgen’s stock tumbled as much as 11.5 percent in early trading on Monday after hedge fund Kerrisdale Capital said it has a short bet on the stock, arguing that U.S. regulators will not approve the sale of its obesity drug.”Zafgen’s deadly obesity drug (beloranib) has no reasonable chance of FDA approval,” the hedge fund wrote in an 11-page report issued on Monday, adding that the company’s stock price is worth only $3 a share.
Hedge Fund Kerrisdale Shorts Zafgen, Sends Stock Tumbling
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