Boston, MA 03/14/2014 (wallstreetpr) – Zogenix, Inc. (NASDAQ:ZGNX) results for FY2013 were nominal to disappointing. Zogenix is focused on developing and commercializing pain relief medications and drugs for central nervous system disorders.
Grim Figures
Total revenues for 4Q2013 came in at $9.9 million compared to $9.5 million in 4Q2012. Out of this, Sumavel SosePro revenue for 4Q2013 was $9.0 million compared to $9.5 million in 4Q2012.
FY2013 total revenue was $33.0 million compared to $44.3 million for FY2012. While product revenue declined by about $4 million, there was zero contract revenue in 2012 whereas in 2012, contract revenue contributed $8.5 million to total revenue.
Net loss for 4Q2013 was $35.6 million compared to $0.6 million for 4Q2012. Net loss for FY2013 was $80.9 million compared to $47.4 million for FY2012. The company had cash and cash equivalents of $72.0 million as of December 1, 2013 after raising $64.5 million in a public offering of common stock.
For 2014, the company expects to spend $100 to $120 million in R&D, selling, and other expenses.
Trouble for Zohydro ER
The company’s recently approved narcotic painkiller Zohydro ER is facing the heat from a range of consumer advocacy groups as well as healthcare organizations. They urged the FDA to not allow its recently licensed Zohydro ER from hitting the market saying it is likely to be abused by drug addicts who use prescription drugs and opioids like these. The advocacy groups say that the FDA is pandering to the drug industry; whereas an FDA advisory panel had voted 11-2 against approval, the FDA went ahead and approved the hydrocodone-based drug in October 2013.
This comes at a time of a rising epidemic of prescription drug abuse in the U.S., especially involving powerful opioid painkilers. Nearly 5 million people in the U.S. abuse pain drugs, more than those who abuse sedatives or stimulants, etc.
Zohydro is 10 times more powerful than other existing opioid painkillers such as Vicodin. It’s easy to tamper with and misuse. New, tamper-resistant varieties are undergoing reviews by the FDA for approval. If they’re approved, Zohydro has a poor chance of beign allowed to continue in the marketplace. That’s the real danger to the future of Zogenix.
