Aardvark Stock Plummets 56% on Phase 3 Trial Halt

AARD Stock Nosedives After Trial Suspension

Aardvark Therapeutics Inc. (NASDAQ:AARD) shares plummeted by 56% on Monday. The sharp decline followed the company's announcement of a voluntary pause on its Phase 3 HERO trial due to potential cardiac safety issues.

Trial Paused Over Safety Concerns

The clinical-stage biopharmaceutical company halted the trial for its drug ARD-101, a treatment for hyperphagia in patients with Prader-Willi Syndrome, as a precautionary measure. The decision was based on reversible cardiac observations detected in a separate study involving healthy volunteers at doses higher than those used in the main trial.

Analyst Downgrades and Market Reaction

The market responded swiftly, with at least four analysts downgrading the stock. RBC Capital, Morgan Stanley, Stifel, and H.C. Wainwright all revised their ratings. Price targets were slashed significantly, with RBC cutting its target from $18.00 to $6.00 and Morgan Stanley reducing its target from $29.00 to $7.00.

Future Outlook and Next Steps

Aardvark no longer expects to release topline data in the third quarter of 2026 and plans to provide new guidance in the second quarter of this year. The company intends to meet with the FDA, which has not placed the study on an official clinical hold.

FAQ

Q: Why did Aardvark Therapeutics stock fall sharply?
A: The stock fell 56% after the company voluntarily paused its Phase 3 HERO trial due to cardiac safety signals found in a related study.

Q: What was the impact of the trial pause on analyst ratings?
A: Four analyst firms, including RBC Capital and Morgan Stanley, downgraded the stock and substantially lowered their price targets.

Source: Investing.com