In a research report issued yesterday, Oppenheimer analyst Akiva Felt reiterated an Outperform rating on shares of Zogenix, Inc. (NASDAQ:ZGNX) with a price target of $23, after the company announced that it received a request from the FDA for additional information pertaining to its Investigational New Drug application with the product ZX008, for the treatment of Dravet syndrome.

Felt wrote, “Given sector skittishness recently, the press release (PR) on ZX008 IND filing may cause investors to worry that something is amiss, but we strongly believe the update itself is benign. We spoke to the company and learned the following: (1) PR/8-K issued for Reg-FD as management was getting questions about IND approval (filed in August) and couldn’t selectively answer without a full PR. (2) FDA asked for two additions to the IND: a) formal valvulopathy definitions and subsequent treatment plans should a patient meet the definition, and b) assurance that patients who withdraw/discontinue still receive a follow-up ECG 3-6 months post treatment, as valvulopathy can emerge post-fenfluramine use. FDA has 30 days to respond (could be sooner) and ZGNX continues to expect Phase 3 start this quarter.”

The analyst concluded, “We think the reason behind ZGNX’ recent share price weakness is concern over drug pricing in general, as marketing an old drug for a pricey orphan indication likely falls under the current outrage umbrella, even if fenfluramine isn’t available as a generic.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Akiva Felt has a total average return of 20.7% and a 51.9% success rate. Felt has a -9.0% average return when recommending ZGNX, and is ranked #88 out of 3795 analysts.

Out of the 4 analysts polled by TipRanks, 3 rate Zogenix stock a Buy, while one rates the stock a Hold. With a return potential of 123%, the stock’s consensus target price stands at $26.