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Why Aardvark Therapeutics Just Lost More Than Half Its Value

ALLISON GATLIN
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⚡ Quantum Brief
Aardvark Therapeutics’ stock plunged over 50% after halting its Prader-Willi syndrome trial due to cardiac side effects in healthy volunteers during Phase 1 testing of ARD-101. The experimental drug ARD-101 targets gut taste receptors to stimulate GLP-1 and other hormones, aiming to curb insatiable hunger linked to the rare genetic disorder. Rhythm Pharmaceuticals advanced its rival Prader-Willi treatment into late-stage trials in December 2025, intensifying competition in the underserved market. The crash reflects broader biotech volatility, compounded by geopolitical tensions and investor fears of another tech bubble akin to the 1990s internet collapse. Aardvark’s setback underscores the high-risk nature of gut-hormone therapies, despite their potential to address obesity-related disorders.
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BREAKING: These Stocks Hardest Hit As Middle East Erupts Biotech stock Aardvark Therapeutics (AARD) crashed Monday after the company stopped its Prader-Willi study, citing concerns about cardiac side effects in healthy volunteers. Prader-Willi syndrome is a genetic condition that can lead to insatiable hunger and obesity. Aardvark's drug, ARD-101, works by stimulating select taste receptors on the intestine. This helps release multiple gut hormones, including GLP-1. But Aardvark on… 12/11/2025 Rhythm Pharmaceuticals said Thursday said it would send it would send its leading drug into registrational testing for Prader-Willi. 12/11/2025 Rhythm Pharmaceuticals said Thursday said it would send it would... Fears of another tech collapse have grown as experts point to parallels between today's AI boom and the internet bubble of the 1990s. (© Gary Neill) Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Get market updates, educational videos, webinars, and stock analysis. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use. *Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by LSEG and Estimate data provided by FactSet. IBD, IBD Digital, IBD Live, IBD Weekly, Investor's Business Daily, Leaderboard, MarketDiem, MarketSurge and other marks are trademarks owned by Investor's Business Daily, LLC. ©2026 Investor’s Business Daily, LLC.

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