Zogenix Shares Plunge 52% on FDA Panel’s Turn-Down of Painkiller
A Food and Drug Administration panel voted not to recommend approval for a painkiller made by Zogenix (ZGNX), sending the drug maker’s shares down by more than half in early trading today.
Reuters reported that the panel had concerns about the addictive nature of the class of painkillers, opioids, that includes the proposed Zogenix drug, Zohydro.
As reported, painkiller addiction in the U.S. is huge and rising.
For Zogenix, Reuters reported, the decision could be a huge blow unless overturned by the FDA itself: “Wall Street analysts say FDA approval could bring Zogenix up to $500 million in annual sales from Zohydro by 2019, or more than ten times the pharmaceutical company's expected 2012 annual revenue of $45.5 million.”
From the editors of YCharts.