Zogenix Shares Soar on Massachusetts Developments - Analyst Blog


Zogenix, Inc. 's ( ZGNX ) shares soared 20.51% after the company announced that the U.S. District Court in Massachusetts has entered an order preventing a ban on Zohydro ER (opioid agonist, extended-release, oral formulation of hydrocodone bitartrate) on Constitutional grounds.

The court agreed with Zogenix's claim that the ban was in direct conflict with the U.S. Food and Drug Administration's (FDA) decision to approve Zohydro ER for management of severe pain, requiring daily, around-the-clock, long-term opioid treatment in patients who have not received adequate relief using alternative treatment options. Zogenix argued that the FDA had approved Zohydro ER only after a thorough review of its safety and efficacy data.

The U.S. District Court's order will be effective from Apr 22, 2014. We believe that the U.S. District Court's order is a major positive for the company. The ban would have limited the access of Zohydro ER to patients in Massachusetts, which in turn would have hampered the product's sales.

We remind investors that Zogenix had launched Zohydro ER in the U.S. on Mar 3, 2014. However, later in March, Governor Deval Patrick banned Zohydro ER due to concerns about the drug's abuse potential. Following this, Zogenix filed a lawsuit in the U.S. District Court in Massachusetts requesting a temporary restraining order against the execution of Governor Patrick's order.

Zogenix currently holds a Zacks Rank #3 (Hold). Some better-ranked healthcare stocks worth considering include Salix Pharmaceuticals Ltd. ( SLXP ), Sucampo Pharmaceuticals, Inc. ( SCMP ) and ImmunoGen, Inc. ( IMGN ). All three sport a Zacks Rank #1 (Strong Buy).

IMMUNOGEN INC (IMGN): Free Stock Analysis Report

SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report

SALIX PHARM-LTD (SLXP): Free Stock Analysis Report

ZOGENIX INC (ZGNX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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: IMGN , SCMP , SLXP , ZGNX



More from Zacks.com:

Related Videos



Most Active by Volume

  • $17.98 ▲ 0.28%
  • $91.29 ▲ 2.06%
  • $7.26 ▼ 1.22%
    $8.33 unch
  • $4.19 ▼ 1.18%
  • $25.83 ▼ 0.19%
  • $7.60 ▼ 1.43%
  • $112.01 ▼ 0.47%
As of 12/24/2014, 02:12 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com