Loss Narrows at Zogenix - Analyst Blog

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Zogenix, Inc. 's ( ZGNX ) fourth-quarter 2012 adjusted net loss of 16 cents per share was narrower than the year-ago loss of 36 cents per share and the Zacks Consensus Estimate of a loss of 17 cents per share. The narrower loss was primarily attributable to lower selling, general and administrative (SG&A) expenses incurred by Zogenix in the final quarter of 2012.

Quarterly Highlights

Total revenues in the reported quarter climbed 20.2% to $9.5 million. Revenues marginally missed the Zacks Consensus Estimate of $10 million. Entire revenues in the final quarter of 2012 came from net product sales.

Revenues in the year-ago quarter included contract revenue worth $2.5 million pertaining to Zogenix's co-promotion agreement with Astellas Pharma ( ALPMY ). The deal, which was regarding Zogenix's injectable migraine and cluster headache therapy Sumavel DosePro, was terminated on Mar 31, 2012.

Research and development (R&D) expenses came in at $5.4 million, flat year over year. SG&A expenses declined 33.1% to $11.9 million. The decline was primarily attributable to the $5.7 million reduction in service fees to Astellas Pharma following the termination of Zogenix's co-promotion agreement with the latter.

Annual Results

For full year 2012, Zogenix suffered a loss of 72 cents per share, compared with the year-ago loss of $1.97 per share. The Zacks Consensus Estimate for 2012 hinted at a loss of 79 cents per share. Total revenues climbed 17.8% to $44.3 million, short of the Zacks Consensus Estimate of $45 million.

Zogenix carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the pharma sector include Lannett Company, Inc. ( LCI ) and WuXi PharmaTech (Cayman) Inc. ( WX ). Both the stocks carry a Zacks Rank #1 (Strong Buy).



ASTELLAS PHARMA (ALPMY): Get Free Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ALPMY , LCI , WX , ZGNX

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