Brean Capital’s healthcare analyst Difei Yang came out with a commentary on Zogenix, Inc. (NASDAQ:ZGNX), after the company announced positive top-line results in the Phase 1b clinical trial of Relday, demonstrating an improved pharmacokinetic and safety profile of Relday in comparison to Risperdal Consta, a competing market leading injectable product for schizophrenia.
Yang wrote, “Based on the Phase Ib results, we believe that Relday is superior to Risperdal Consta for 1) simplified dosing regimen/no oral supplementation; 2) quick and predictable rise to steady state; and 3) once-monthly dosing interval vs. Risperdal Consta’s bi-weekly dosing.” Furthermore, “Zogenix is in search of a partner to take over development and commercialization responsibilities of Relday while the company is focused on developing ZX-008. The announcement of a deal could be a positive event for Zogenix shareholders. Our expectation on the upfront payment is low and it is not in our current target price calculation.”
The analyst concluded, “Zogenix shares have exhibited recent weakness along with companies in the biotech sector in general. In our opinion, the company’s fundamentals have been improving while the broader market correction has been taking place. We would therefore be buyers on the weakness and wait for a Phase III read-out likely in mid to late 2016.”
Yang reiterated a Buy rating on Zogenix shares, with a price target of $28, which represents a potential upside of 118% from where the stock is currently trading.
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 -5.1% and a 33.0% success rate. Yang has a 12.9% average return when recommending ZGNX, and is ranked #3450 out of 3755 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Zogenix stock a Buy, while 1 rates the stock a Hold. With a return potential of 100%, the stock’s consensus target price stands at $26.