The San Diego, CA-based pharmaceutical company has commercialized Zohydro ER, a controversial pain relief drug, analysts said, adding that the market under-appreciates the medical value this product brings to patients and pain-treating specialists.
Analysts noted upcoming catalysts that may lift shares from their current "depressed state," including supplemental new drug application (sNDA) approval of abuse deterrent formulation of Zohydro ER with the target date of January 31, 2015 and further Zohydro ER uptake.
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Additionally, analysts see possibilities for potential business development deal announcements to either expand revenue or reduce costs, a successful capital raise, and the start of Phase III trials for Dravet syndrome during the third quarter of 2015, which the company announced last week.
Separately, TheStreet Ratings team rates ZOGENIX INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZOGENIX INC (ZGNX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself."