BioAge Stock Nosedives On Obesity Drug Study Halt: Downgrades Crush Retail Sentiment

BioAge Labs’ stock lost more than two-thirds of its market cap in pre-market trading Monday, poised to hit an all-time low following its decision to discontinue the STRIDES Phase 2 study of azelaprag, its investigational obesity drug. 

The halt, announced on Friday, came after some subjects in the azelaprag treatment arms showed elevated liver enzymes, though no clinically significant symptoms were reported. 

The tirzepatide-only treatment group did not exhibit transaminase elevations, according to the company.

CEO Kristen Fortney said, "We made the difficult decision to discontinue the STRIDES Phase 2 study of azelaprag because it became clear that the emerging safety profile of the current doses tested is inconsistent with our goal of a best-in-class oral obesity therapy.” 

BioAge said it remains focused on developing therapies for metabolic aging and advancing its NLRP3 inhibitor program alongside other research initiatives.

The news spurred swift Wall Street downgrades on Monday. 

Jefferies cut its rating from ‘Buy’ to ‘Hold’ and slashed its price target from $42 to $7, noting the unexpected liver signal after a clean safety profile in eight prior Phase 1 studies by BioAge and Amgen. 

Citi also downgraded the stock to ‘Neutral’ from ‘Buy’, reducing its price target from $45 to $7. The brokerage highlighted that the liver toxicity concerns significantly limit azelaprag’s potential in obesity treatments and eliminate a key catalyst for BioAge’s shares.

BIOA sentiment and message volume on Dec 9 premarket as of 7:45 am ET | source: Stocktwits

Retail sentiment on Stocktwits turned sharply ‘bearish’ after the announcement, a reversal from ‘bullish’ levels the previous day. 

Investors expressed frustration over the trial’s discontinuation and the steep decline in share value.

BioAge, which had seen strong market interest since its IPO in September amid the weight-loss drug frenzy, is now down over 10% year-to-date. 

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