Oppenheimer Maintains Bullish Stance On Zogenix Following sNDA Filling For Abuse Deterrent Zohydro Formulation


In a research note published today, Oppenheimer analyst Akiva Felt maintained an Outperform rating on Zogenix (NASDAQ:ZGNX) with a $2.50 price target, as the company announced an sNDA filing for a modified formulation of Zohydro ER, which has been designed to have abuse deterrent properties.

Felt wrote, “We anticipate a review time of up to four months, suggesting potential approval during 1Q15. We do not expect the potentially revised drug label to include explicit abuse deterrent language. However, management does expect the formulation to be on par with other ADT opioid products with similar labeling (i.e., Opana). We note that development of another tamper-resistant formulation of Zohydro based on Altus technology remains on track. Importantly, we continue to expect ZGNX shares to be driven by prescription trends.”

The analyst added, “While today’s news is not a game changer for the stock, in our view, we are encouraged by this development as it could represent a potential turning point for the company with regards to lingering regulatory uncertainties.”

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 66.8% and a 65.0% success rate. Felt has a -35.8% average return when recommending ZGNX, and is ranked #28 out of 3314 analysts.

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