Oppenheimer’s healthcare analyst Akiva Felt reiterated an Outperform rating on Zogenix, Inc. (NASDAQ:ZGNX) with a $2.50 price target, after the company reported its first-quarter results and outlined its ambitious clinical development strategy for its pipeline in its conference call yesterday.


Felt noted, “Zogenix reported 1Q15 revenues of $4.6M and EPS of ($0.15). The results are not comparable to our estimates as Zohydro sales were reported as discontinued operations. We’re updating our model to reflect the Zohydro-divestiture accounting and management comments on op-ex. More importantly, Zogenix detailed the proposed Phase 3 trial design for ZX008 in Dravet syndrome, where the company expects to report top-line data in mid-2016 following the completion of two parallel studies (US & EU). If positive, the company plans to file for approval by YE16. Meanwhile, Zogenix expects to report data from the Phase 1b Relday study in schizophrenia in 3Q15, which could lead to partnership discussions ahead of Phase 3 trial initiation.”

“We continue to see upside potential for ZGNX as investors move beyond Zohydro and begin to focus on the company’s pipeline CNS opportunities, particularly ZX008 in Dravet syndrome, which is expected to report pivotal data in mid-2016.”, the analyst added

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Akiva Felt has a total average return of 32.3% and a 67.0% success rate. Felt has a -21.0% average return when recommending ZGNX, and is ranked #29 out of 3599 analysts.

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