Zogenix (ZGNX), a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain, priced its IPO on 22nd November, 2010 at $4 per share, with a first day negitive return of 0.5%
Business Overview (from prospectus)
We are a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Our first commercial product, Sumavel™ DosePro™ (sumatriptan injection) Needle-free Delivery System, was launched in January 2010. Sumavel DosePro offers fast-acting, easy-to-use, needle-free subcutaneous administration of sumatriptan for the acute treatment of migraine and cluster headache in a pre-filled, single-use delivery system. Sumavel DosePro is the first drug product approved by the U.S. Food and Drug Administration, or FDA, that allows for the needle-free, subcutaneous delivery of medication. Our lead product candidate, ZX002, is a novel, oral, single-entity controlled-release formulation of hydrocodone currently in Phase 3 clinical trials for the treatment of moderate to severe chronic pain in patients requiring around-the-clock opioid therapy. Sumavel DosePro and ZX002 each has the potential to address significant unmet medical needs and become important and widely-used additions to the treatment options available to patients and physicians in the United States’ multi-billion dollar migraine and chronic pain markets, respectively.
Offering: 14 million shares at $4 per share. Net proceeds of approximately $35.0 million will be used to fund Phase 3 clinical trials and related development activities for ZX002, and approximately $15.7 million to fund commercialization of Sumavel DosePro.
Lead Underwriters: Wells Fargo Securities (WFC), Leerink Swann.
The company began recognizing product revenues after year ended December 31, 2009...Revenue for the nine months ended September 30, 2010 was $14.6 million and zero for the nine months ended September 30, 2009... Cost of sales for the nine months ended September 30, 2010 was $9.4 million and zero for the nine months ended September 30, 2009...Research and development expenses decreased to $19.4 million for the nine months ended September 30, 2010 compared to $22.3 million for the nine months ended September 30, 2009...Selling, general and administrative expenses increased to $36.8 million for the nine months ended September 30, 2010 compared to $8.0 million for the nine months ended September 30, 2009...
Sumavel DosePro competes against other marketed migraine therapeutics. The largest class of marketed prescription products for treatment of migraine is the triptan class. The largest selling triptan is sumatriptan, with the branded products Imitrex and Treximet marketed by GSK (GSK) and Sumavel DosePro marketed by us. There are six other branded triptan therapies being sold by pharmaceutical companies including AstraZeneca PLC (AZN), Endo Pharmaceuticals Holdings Inc. (ENDP), Johnson & Johnson (JNJ), Merck (MRK), and Pfizer (PFE) in the United States.