Will they run out of cash before a decision is made? We are more than 1/2 way through 2nd quarter now. By the end of June they will most likely have a few million dollars in cash. Have they been selling ATM shares?
loadinmypants: what a clever screen name you have!!! LOL just noticed it Anyway dont know bout sellinh atm shares. I just keep up with latest news facts and still points towards approval but this is ridiculous. Have you seen the fda hold up this long? Therr should be some mandate in place.
Well i think we should be very concerned about the cash situation. If this delay goes past the first couple weeks of July, then Zogenix will be out of cash. However, if the ATM is effective and they are selling shares into the market, this will allow them to survive a few months longer. The cash situation is not ideal
Assuming approval, sales of Zohydro would not help the company before complete cash burn is realized. It is my assumption that the company will sale shares regardless of how the FDA rules. Obviously a favorable ruling will generate much higher share prices from here allowing them to sale less shares until they are running on all cylinders.
ZGNX will head towards its low and possible hitting a new 52week low till the FDA approval. It then should spike the stock up. This could be a good thing or bad but this is a risk that some will take. Good luck to all.