Data from clinical trials of an anti-hunger drug sent Aardvark's stock plummeting by 65%. What's next?

Aardvark Therapeutics’ stock price plummeted by 65% on October 23. Its drug for suppressing appetite in people with Prader-Willi syndrome showed only a slight advantage over a placebo, according to data published from a Phase 3 clinical trial that was terminated early. These results cannot be considered final—in February, Aardvark suspended the trial due to heart problems in one of the participants, but on October 22, the U.S. regulatory agency authorized the trial to resume.

Aardvark shares fell 65% to $1.4 on the Nasdaq on October 23. After the market opened on October 26, the stock continued to decline; at the time of this article’s publication, it was down 11.5%.

The stock price plummeted after the company released data from the final, Phase 3 clinical trials of its lead drug candidate, ARD-101. The company tested the drug on patients with Prader-Willi syndrome—a rare genetic disorder characterized, among other things, by a constant feeling of hunger, which, if left unchecked, leads to severe obesity.

The published results showed that taking the drug had a short-term effect on reducing feelings of hunger. Just two weeks after treatment ended, hunger levels returned to baseline. However, the placebo group experienced a smaller withdrawal effect, according to the press release.

However, these results cannot be considered definitive, the report notes. In February 2026, Aardvark suspended the trials after detecting changes in the electrocardiogram (ECG) of one of the participants; in May, the U.S. Food and Drug Administration (FDA) made the same decision. As a result, the company enrolled only about 74% of the planned participants in the study, which made it impossible to confirm the drug’s efficacy.

After reviewing data from other trial participants, the FDA lifted the ban on clinical trials of ARD-101 on October 22. The company stated that it plans to meet with the regulator to agree on the design of new Phase 3 trials and intends to resume work on ARD-101 in 2027.

Aardvark went public on the Nasdaq in February 2025; since then, its stock price has fallen by nearly 91% from the offering price.

Despite this, five Wall Street analysts recommend buying the stock, three recommend holding it, and only two recommend selling it. The average target price is $9.13, which implies growth potential of nearly 557% following the October 23 price crash.