Zogenix, Inc. (Nasdaq:ZGNX), a pharmaceutical company developing and commercializing unique therapies for the treatment of central nervous system (CNS) disorders, announced today that it has priced an underwritten public offering of 4,750,000 shares of its common stock at a price to the public of $18.00 per share. The gross proceeds from the offering, before underwriting discounts and commissions and offering costs, are expected to be approximately $85,500,000.
Zogenix has granted the underwriters a 30-day option to purchase up to an additional 712,500 shares of common stock. All of the shares to be sold in the offering are being sold by Zogenix.Zogenix intends to use the net proceeds from this offering to fund clinical research and development of ZX008 in Dravet syndrome and potentially other epilepsy indications, submission of regulatory filings and preparation of commercial activities for ZX008, and for working capital and other general corporate purposes.
Leerink Partners LLC and Stifel are acting as joint book-running managers for the offering.Oppenheimer & Co. and Brean Capital, LLC are acting as co-managers for the offering. The offering is expected to close on or about August 4, 2015, subject to satisfaction of customary closing conditions. (Original Source)
Shares of Zogenix closed yesterday at $18.49. ZGNX has a 1-year high of $21.65 and a 1-year low of $8.56. The stock’s 50-day moving average is $15.57 and its 200-day moving average is $12.65.
On the ratings front, Zogenix has been the subject of a number of recent research reports. In a report issued on July 15, Brean Murray Carret analyst Difei Yang reiterated a Buy rating on ZGNX, with a price target of $28, which implies an upside of 51.4% from current levels. Separately, on May 11, Oppenheimer’s Akiva Felt maintained a Buy rating on the stock and has a price target of $20.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Difei Yang and Akiva Felt have a total average return of 27.2% and 42.2% respectively. Yang has a success rate of 60.8% and is ranked #95 out of 3718 analysts, while Felt has a success rate of 66.7% and is ranked #15.
Zogenix Inc is a pharmaceutical company engaged in commercializing & developing therapies that address clinical needs for people living with pain-related and CNS disorders that needs treatment alternatives to help return to normal daily functioning.