Aardvark Therapeutics voluntarily paused its Phase 3 HERO trial due to reversible cardiac observations detected at higher-than-target therapeutic doses in safety monitoring of a healthy volunteer study14
The stock plunged 54% following the announcement, trading near $5.51-$6 compared to the prior close of $12.49134
Aardvark reversed guidance and no longer expects to release HERO trial topline data in Q3 2026, with updated guidance expected in Q2 202613
Multiple major analysts downgraded the stock:
Morgan Stanley cut its price target from $29 to $7, Stifel reduced it from $24 to $6, RBC cut from $18 to $6, and BTIG slashed from $26 to $91235
The trial pause was treating hyperphagia (excessive hunger) in patients with Prader-Willi syndrome using ARD-1013
Analyst consensus had previously supported a $26.36 average price target with 'Moderate Buy' ratings before the safety signal emerged1
The collapse was unexpected despite building bearish sentiment in 2026, with analysts calling the cardiac signal a complete surprise as it had not appeared in prior studies1
Competitive dynamics shifted negatively as Vykat's recent approval closed Aardvark's window for first-mover advantage in the treatment category1
Sources:
1. https://www.ainvest.com/news/aardvark-54-plunge-sell-news-event-fundamental-reset-2603/
2. https://www.marketbeat.com/instant-alerts/aardvark-therapeutics-nasdaqaard-given-new-900-price-target-at-btig-research-2026-03-02/
3. https://stocktwits.com/news-articles/markets/equity/aard-stock-slumps-pre-market-analysts-bearish-suspension-phase-3-trial/cZd3BeGRI2P
4. https://finviz.com/news/326626/why-is-aardvark-therapeutics-stock-sinking-monday
5. https://www.investing.com/news/stock-market-news/aardvark-therapeutics-stock-plunges-after-trial-pause-93CH-4535794