There is no fundamental reason why Zogenix, Inc. (ZGNX) plummeted 5.12% in the after-hours trading session at the price of $14.26. ZGNX is a global biopharmaceutical company. It develops and commercializes therapies to transform the lives of patients and their families with rare diseases.
Orphan Drug Designation for FINTEPLA
On 26th August 2021, ZGNX published that the Japanese Ministry of Health, Labour & Welfare (MHLW) had granted Orphan Drug Designation to FINTEPLA® (fenfluramine) oral solution. ZGNX developed this drug as a potential treatment for seizures affiliated with Dravet syndrome. Dravet syndrome is a rare infant- and childhood-onset epilepsy identified by frequent and severe treatment-resistant seizures. The company is on track to submit a J-NDA for FINTEPLA by this year. The product will be made available in Japan after approval through an exclusive distribution agreement with Nippon Shinyaku, Ltd.
ZGNX Granted Inducement Awards
On 16th August 2021, ZGNX declared that the company’s board of directors had granted inducement awards to fourteen new employees. The awards had presented on 15th August 2021, under Zogenix’s 2021 Employment Inducement Equity Incentive Award Plan. The Inducement Award Plan had approved under Nasdaq Marketplace Rule 5635(c)(4). It has the options to purchase an aggregate of 34,580 shares of Zogenix common stock and 17,340 restricted stock units. The plan has a ten-year term and an exercise price equal to $13.75.
Second Quarter 2021 Financial Results
On 5th August 2021, ZGNX announced financial results for the three and six months that ended on 30th June 2021 and provided a corporate update. CEO of ZGNX, Stephen J. Farr, remarked that they were motivated by the continued momentum of their FINTEPLA® in Dravet syndrome. They focused on driving broader adoption of FINTEPLA as physician visits increase and they move forward with new treatment decisions. The company continues to expand and achieve significant progress in advancing their late-stage development portfolio. They are on track with their pipeline initiatives for FINTEPLA and MT162 after three meetings with the FDA, he added.
Zogenix (ZGNX) reported revenue of $18.8 million for the second quarter ended 30th June 2021. It represents an increase of 37% compared to the $13.7 million in the first quarter of 2021. The revenue was $1.0 million for the three months ended 30th June 2020, consisted solely of collaboration revenue. A net loss for the second quarter of 2021 was $58.9 million, or $1.05 per share. It was $53.3 million, or $0.96 per share, in the second quarter ended 30th June 2020.
ZGNX stock recorded revenue of $32.5 million for the six months ended 30th June 2021. Revenue was $2.3 million for the corresponding quarter of 2020, consisted solely of collaboration revenue. Net loss for the six months ended 30th June 2021 was $114.5 million, or a net loss of $2.05 per share. It was $79.1 million, or a net loss of $1.53 per share, in the six months ended 30th June 2020.
