Before the market opened Tuesday, Brean Capital analyst Difei Yang maintained a Buy rating on Zogenix (NASDAQ:ZGNX) with a price target of $2.50, following a one on one meeting with CFO Ann Rhodes, President Dr. Stephen Farr and Chief Medical Officer Dr. Bradley Galer last week in San Francisco.
Yang noted, “We spent most of our time discussing ZX-008, low dose fenfluramine, for the treatment of Dravet syndrome. The key takeaways are: 1). while the exact mechanism of action of fenfluramine is unclear at this time, the clinical benefit is overwhelmingly strong; 2). side effect of fenfluramine maybe tolerable for lower dosing; and 3). there is a disconnect between the valuation of Zogenix and GW Pharma considering it is clear that no credit was given to the near Phase III development program of fenfluramine.”
The analyst concluded, “We believe the dislocation creates a buying opportunity in ZGNX shares, and we are confident as concerns over Zohydro ER dissipate and fenfluramine enters Phase III development in Q3/2015, the value of the Dravet program would be realized.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Difei Yang has a total average return of 2.6% and a 50.0% success rate. Yang has a 9.7% average return when recommending ZGNX, and is ranked #1776 out of 3428 analysts.