Aardvark Therapeutics Inc. (NASDAQ:AARD) on Monday announced to voluntarily pause its Phase 3 HERO trial for Prader-Willi Syndrome.
The update has sent the stock plunge almost 61%. The decision comes as the company is conducting a comprehensive review of safety data.
AARD Pauses Phase 3 HERO Trial; Shares Fall
The company revealed that it will not announce topline data from the HERO trial as previously anticipated in the third quarter of 2026 due to reversible cardiac observations at higher than target therapeutic doses found during routine safety monitoring.
William Blair analyst Andy Hsieh noted that the severe disruption of the study pause may prevent the ongoing Phase 3 HERO trial from being fully completed, but it opens the possibility of unblinding the study early.
The CEO, Tien Lee, emphasized the commitment to patient safety and the importance of evaluating the signals seen at elevated doses of ARD-101.
The company plans to continue collaborating closely with the FDA and the Prader-Willi Syndrome community while determining the next steps for its clinical program.
Stock Shows Bearish Technical Signals
The stock is currently trading 1.5% below its 20-day simple moving average (SMA) and 2.3% below its 100-day SMA, indicating a bearish trend in the short to medium term.
Shares have decreased approximately 73% over the past 12 months and are currently positioned closer to their 52-week lows than highs.
The RSI is at 50.00, which is considered neutral territory. Meanwhile, MACD is at -0.05, below its signal line at 0.00, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $5.00
- Key Support: $4.50
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $21.89. Recent analyst moves include:
- Oppenheimer: Outperform (Lowers Target to $21.00) (Mar. 2)
- BTIG: Buy (Lowers Target to $9.00) (Mar. 2)
- HC Wainwright & Co.: Downgraded to Neutral (Mar. 2)
AARD Price Action: Aardvark Therapeutics shares were up 0.09% at $4.91 during premarket trading on Wednesday, according to Benzinga Pro data.
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