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Zogenix Posts Smaller 4Q Loss as Costs Shrink

Fri, 03/15/2013 - 12:19pm
The Associated Press

Zogenix Inc. said Friday that it had a smaller loss in the fourth quarter after it ended a marketing partnership on its injectable migraine treatment, Sumavel DosePro.

Zogenix ended a marketing partnership with Japanese drugmaker Astellas Pharma in early 2012, and as a result the company's selling and general expenses decreased compared to a year ago. Later in the year it formed a marketing partnership with a unit of Covidien PLC. Sumavel DosePro is the company's only approved drug, and it said sales grew 12 percent to $9.5 million during the fourth quarter.

Zogenix reported a loss of $643,000, or a penny per share. It lost $23.7 million, or 36 cents per share, in the fourth quarter of 2011. Total revenue increased to $9.5 million from $7.9 million.

Analysts forecast a loss of 16 cents per share and $9.9 million in revenue, according to FactSet.

Sumavel DosePro is delivered through a needle-free system. Zogenix said sales of the drug rose 18 percent to $35.9 million in 2012. Contract revenue rose to $8.5 million from $7.2 million.

Zogenix is also seeking approval for an extended-release pain drug called Zohydro. It wants to market the drug for the treatment of moderate to severe chronic pain. Zohydro is designed to last longer than other severe pain drugs and, unlike many similar products, does not contain acetaminophen. That means patients would not be at risk for possible liver side effects.

A panel of advisers to the Food and Drug Administration overwhelmingly voted against approving Zohydro in December, and Zogenix shares are down about 20 percent since then. The panelists said they were concerned Zohydro would contribute to prescription painkiller abuse.

The FDA does not have to follow the advice of its panels, but it often does so. The agency was scheduled to make a decision on Zohydro by March 1. In late February Zogenix said that review was being extended. It's not clear when the FDA will complete the review, but Zogenix said it has been told it will probably last "several weeks."

The company cut its loss to $47.4 million, or 59 cents per share, in 2012 from $83.9 million, or $1.96 per share, in 2011. Total revenue grew 18 percent, to $44.3 million.

Zogenix rose 9 cents, or 4.5 percent, to $1.96 in afternoon trading.

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