In a research report released today, William Blair analyst Tim Lugo reiterated a Market Perform rating on shares of Zogenix, Inc. (NASDAQ:ZGNX), after the company reported third-quarter earnings and gave a corporate update In trading Tuesday the shares shot up to 10.83% to close at $13.20.
Lugo wrote, “The company continues to prepare for the guided initiation of its Phase III program with ZX008, the company’s lead candidate to treat Dravet syndrome, in fourth quarter 2015. Zogenix submitted the investigational new drug (IND) application at the end of August and subsequently announced that the FDA requested additional information before initiating the trial, including normative ranges for echocardiogram, and a follow-up visit three to six months after treatment. On the call, management noted that the FDA agreed on the company’s proposed normative ranges for valvulopathy; however, the agency also asked the company to provide more detailed information on normal versus abnormal cardiac function on the echocardiogram measurements given the relatively common (50% to 80% depending on the valve) mild valve regurgitation that exists in children.”
The analyst concluded, “We continue to rate Zogenix Market Perform based on the current strategic transition into a central nervous system development-stage company with the company’s current assets in the pipeline, ZX008 and Relday, holding significant market risk, in our opinion.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Lugo has a total average return of -8.4% and a 32.1% success rate. Lugo has a -41.2% average return when recommending ZGNX, and is ranked #3633 out of 3832 analysts.