Zogenix (ZGNX) Received its Third Buy in a Row

By Carrie Williams

After Mizuho Securities and Stifel Nicolaus gave Zogenix (NASDAQ: ZGNX) a Buy rating last month, the company received another Buy, this time from Northland Securities. Analyst Carl Byrnes maintained a Buy rating on Zogenix today and set a price target of $60. The company’s shares closed last Monday at $43.62.

Byrnes observed:

“We view the acquisition favorably as we see MT1621 as augmenting ZGNX’s rare pediatric therapeutic platform. Pre-open, Zogenix announced it has entered into a definitive agreement to acquire privately- held, an upfront payment of $275MM, comprised of $175MM in cash and $75MM in ZGNX shares. Modis will also be eligible for milestone payments of $100MM upon US FDA approval and $50MM upon EMA approval of its lead candidate MT1621 – an investigation deoxynucleoside substrate enhancement therapy in late- stage development for the treatment of Thymidine Kinase 2 deficiency (TK2d). Modis will be eligible to receive 5% royalty on any future net sales of MT1621.”

According to TipRanks.com, Byrnes has 0 stars on 0-5 star ranking scale with an average return of -12.8% and a 26.0% success rate. Byrnes covers the Healthcare sector, focusing on stocks such as Opiant Pharmaceuticals Inc, Aridis Pharmaceuticals Inc, and Adamas Pharmaceuticals.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Zogenix with a $64 average price target.

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Based on Zogenix’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $37.76 million. In comparison, last year the company had a GAAP net loss of $29.04 million.

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Zogenix, Inc. is a pharmaceutical compan. It engages in the development and commercialization of central nervous system (CNS) therapies and products for the treatment orphan diseases and other CNS disorders. Its products include ZX008 and Relday.