Zogenix, Inc. (ZGNX) saw its loss widen to $21.31 million, or $0.86 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $10.39 million, or $0.42 a share.
Revenue during the quarter plunged 70.71 percent to $2.70 million from $9.21 million in the previous year period. Gross margin for the quarter contracted 748 basis points over the previous year period to 7.75 percent.
Operating loss for the quarter was $21.10 million, compared with an operating loss of $14.08 million in the previous year period.
"Zogenix has a clear development pathway to regulatory submissions for ZX008 in the U.S. and Europe in Dravet syndrome," said Stephen J. Farr, Ph.D., President and chief executive officer of Zogenix. "With enrollment now complete in Study 1, our first Phase 3 trial, we look forward to the availability of top-line data in the third quarter of this year. We believe ZX008 has the potential to transform the lives of children and their families with Dravet syndrome."
Working capital drops significantly
Zogenix, Inc. has witnessed a decline in the working capital over the last year. It stood at $80.47 million as at Mar. 31, 2017, down 43.46 percent or $61.86 million from $142.33 million on Mar. 31, 2016. Current ratio was at 5.39 as on Mar. 31, 2017, down from 7.87 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 105 days for the last year period. Days sales outstanding went up to 40 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has increased to 165 days for the quarter compared with 125 days for the previous year period. At the same time, days payable outstanding went up to 143 days for the quarter from 51 for the same period last year.
Debt moves up
Zogenix, Inc. has witnessed an increase in total debt over the last one year. It stood at $22.34 million as on Mar. 31, 2017, up 7.64 percent or $1.59 million from $20.76 million on Mar. 31, 2016. Total debt was 10.67 percent of total assets as on Mar. 31, 2017, compared with 7.24 percent on Mar. 31, 2016. Debt to equity ratio was at 0.22 as on Mar. 31, 2017, up from 0.12 as on Mar. 31, 2016.
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