Right on the heels of the Food and Drug Administration’s approval of the narcotic painkiller Zohydro, San Diego-based Zogenix Inc. has announced a $60 million public offering of its stock.
Shares for the company (Nasdaq: ZGNX) fell 13 percent Nov. 4 following the announcement, closing at $2.54.
Proceeds from the offering will help fund the commercialization of Zohydro, Zogenix said, in a news release.
Zogenix also released its third-quarter earnings. The company lost $10.8 million in the three months ended Sept. 30, compared with a $19.3 million loss in the like quarter in 2012.
Zohydro, an extended release version of painkiller hydrocodone, received FDA approval despite an unfavorable ruling from an advisory committee which cited addiction concerns. The drug has been classified a Schedule II controlled substance — the most regulated and restricted form of prescription medications, because of its abuse potential. It can only be prescribed when all other forms of pain management medication have been found inadequate, the company said.
— SDBJ Staff Report