Oppenheimer Maintains Outperform On Zogenix Following Acquisition Of Brabant Pharma


In a research report issued Tuesday, Oppenheimer analyst Akiva Felt maintained an Outperform rating on Zogenix (NASDAQ:ZGNX) with a price target of $2.50, as the company announced that it will acquire Brabant Pharma, a private UK-based company, for $35M upfront ($20M cash + $15M stock) and up to $95M in future milestone/royalty payments.

Felt said, “We like the deal as it gives ZGNX an important source for future upside consideration by investors. We’re assessing the new Dravet opportunity and remain focused on Zohydro over the near term.” The analyst added, “In our view, the deal provides an important source of diversification beyond Zohydro and Relday, which have been struggling to attract value from investors. Also, having the option to pivot to rare diseases could help mitigate future uncertainties related to Zohydro, should they arise.”

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 59.5% and a 69.6% success rate. Felt has a -19.7% average return when recommending ZGNX, and is ranked #25 out of 3349 analysts.

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