Zogenix, Inc (ZGNX) saw its loss widen to $23.49 million, or $0.95 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $8.84 million, or $0.36 a share. Revenue during the quarter surged 80.66 percent to $10.99 million from $6.08 million in the previous year period. Gross margin for the quarter expanded 2590 basis points over the previous year period to 46.14 percent.
Operating loss for the quarter was $23.32 million, compared with an operating loss of $14.12 million in the previous year period.
“Zogenix is in a strong operating position, and 2017 has the potential to be a transformative year for the Company,” said Stephen J. Farr, Ph.D., President and Chief executive officer of Zogenix. “We have a clear regulatory pathway for ZX008 in Dravet syndrome and anticipate top-line data readouts from our Phase 3 program this year, the first being in the third quarter. In addition, we intend to initiate a Phase 3 clinical trial for ZX008 in Lennox Gastaut Syndrome (LGS), another rare and severe childhood-onset epilepsy disorder, in the second half of 2017. Our development program is well supported by a strong balance sheet that allows the Company to move forward with no plans to raise capital ahead of the initial Phase 3 data in Dravet syndrome. Zogenix remains confident in ZX008’s therapeutic potential in Dravet syndrome and other refractory orphan epilepsy disorders, and we look forward to leveraging the significant opportunities that lie ahead of us.”
Working capital drops significantly
Zogenix, Inc has witnessed a decline in the working capital over the last year. It stood at $99.60 million as at Dec. 31, 2016, down 35.54 percent or $54.91 million from $154.52 million on Dec. 31, 2015. Current ratio was at 5.90 as on Dec. 31, 2016, down from 6.14 on Dec. 31, 2015.
Debt comes down
Zogenix, Inc has recorded a decline in total debt over the last one year. It stood at $18.82 million as on Dec. 31, 2016, down 15.28 percent or $3.40 million from $22.22 million on Dec. 31, 2015. Total debt was 8.13 percent of total assets as on Dec. 31, 2016, compared with 7.26 percent on Dec. 31, 2015. Debt to equity ratio was at 0.16 as on Dec. 31, 2016, up from 0.12 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
