Shares of agetech company BioAge have plummeted since the company announced the discontinuation of a Phase 2 trial for its weight-loss drug azelaprag due to safety concerns.
The abrupt halt comes just a little over two months after the company raised US$198m in an initial public offering in late September.
Hagens Berman has opened an investigation into whether BioAge’s IPO documents may have contained misstatements or omissions and urges investors who suffered substantial losses to submit your losses now.
On September 25, 2024, BioAge went public on NASDAQ (BIOA), pricing 11 million shares at US$18 per share.
Preclinical data had suggested that azelaprag, when combined with other therapies, could significantly aid weight loss while preserving muscle mass, according to the IPO documents. The company said it had initiated a Phase 2 trial of azelaprag in combination with Eli Lilly’s tirzepatide, also known as Mounjaro and Zepbound, with initial results expected in the third quarter of 2025.
However, on December 6, BioAge announced the discontinuation of the trial after observing elevated liver enzymes in several patients receiving azelaprag, leading the company to halt dosing and enrollment in the trial.
BioAge informed the FDA of its decision and stated it would provide an updated plan for the drug in the first quarter of 2025. The news sent BioAge shares tumbling nearly 80 per cent on December 9.
The disclosure and stock drop have driven shareholder rights firm Hagens Berman to open an investigation.
“We are investigating whether BioAge adequately disclosed the potential safety risks associated with azelaprag in its IPO filings,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
“Investors deserve to be fully informed about the risks they are taking when investing in a biotech company’s IPO.”
