Company Update (NASDAQ:ZGNX): Zogenix, Inc. Announces Proposed Public Offering of 3,800,000 Shares of Common Stock
Zogenix, Inc. (NASDAQ:ZGNX), a pharmaceutical company developing and commercializing unique therapies for the treatment of central nervous system (CNS) disorders, announced today that it intends to offer and sell 3,800,000 shares of its common stock in an underwritten public offering. Zogenix also expects to grant to the underwriters for the offering a 30-day option to purchase an additional 570,000 shares of common stock offered in the public offering. All of the shares to be sold in the offering are to be sold by Zogenix. Zogenix intends to use the net proceeds from this offering to fund clinical research and development of ZX008 in Dravet syndrome and potentially other epilepsy indications, submission of regulatory filings and preparation of commercial activities for ZX008, and for working capital and other general corporate purposes.
Leerink Partners LLC and Stifel are acting as joint book-running managers for the offering. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. (Original Source)
Following the offering announcement, shares of Zogenix are dropping 4.78% to $18.92. ZGNX has a 1-year high of $21.65 and a 1-year low of $8.56. The stock’s 50-day moving average is $15.23 and its 200-day moving average is $12.54.
On the ratings front, Zogenix has been the subject of a number of recent research reports. In a report issued on July 15, Brean Murray Carret analyst Difei Yang reiterated a Buy rating on ZGNX, with a price target of $28, which represents a potential upside of 39.0% from where the stock is currently trading. Separately, on May 11, Oppenheimer’s Akiva Felt maintained a Buy rating on the stock and has a price target of $20.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Difei Yang and Akiva Felt have a total average return of 26.0% and 41.4% respectively. Yang has a success rate of 59.5% and is ranked #104 out of 3717 analysts, while Felt has a success rate of 66.3% and is ranked #13.
Zogenix Inc is a pharmaceutical company engaged in commercializing & developing therapies that address clinical needs for people living with pain-related and CNS disorders that needs treatment alternatives to help return to normal daily functioning.