Aardvark Therapeutics Faces Investor Backlash After Dramatic Stock Plunge

Aardvark Therapeutics Faces Severe Investor Scrutiny

In a shocking development on March 2, 2026, Aardvark Therapeutics (NASDAQ: AARD) saw its stock price plummet by an astonishing 56%, equating to a loss of $7.02 per share. This drastic downturn followed the company's revealing announcement that it had halted its Phase 3 clinical trial named the Hunger Elimination of Reduction Objective (HERO), aimed at assessing the safety and efficacy of its lead drug candidate, ARD-101, in treating hyperphagia in patients diagnosed with Prader-Willi Syndrome (PWS).

Hagens Berman, a prominent national shareholder rights firm, swiftly initiated an investigation into Aardvark Therapeutics, focusing on whether the company had misled its investors and potentially violated federal securities laws. The firm has reached out to Aardvark shareholders affected by this shocking market event, encouraging them to report their losses in light of the new developments.

The abrupt pause of the HERO trial was attributed to serious safety concerns as Aardvark disclosed “reversible cardiac observations.” This revelation significantly dampened investor confidence, leading several analysts to lower or even suspend their price targets on Aardvark’s stock. Investors, who had previously been optimistic regarding ARD-101's potential, faced unfinished promises as the company indicated it now does not expect to release topline data from the HERO trial during the anticipated timeline of the third quarter of 2026.

Prior to the announcement, Aardvark had proclaimed ARD-101 as a revolutionary “first-in-class” treatment, suggesting its drug was in alignment with FDA guidance, and expressing plans to include patients as young as four years old in trials. Aardvark had also assured the market regarding the drug's