Analyst target $6 $6 $6 on approva - here is the story
Zogenix surges after FDA approves drug, analyst says stock has more room to run
Shares of Zogenix (ZGNX) are jumping after the company announced that the FDA had approved its pain management drug. WHAT'S NEW: The FDA approved Zogenix's pain management drug, Zohydro ER, Zogenix reported this afternoon. The agency approved the drug for use by patients who have pain severe enough to require daily, around-the-clock, long-term treatment and who cannot be adequately comforted with other treatment options, the company stated. WHAT'S NOTABLE: In a note to investors on September 27, William Blair analyst Tim Lugo wrote that his price target for Zogenix would have been about $6 if the FDA was to approve Zohydro. According to Lugo, Zogenix had several upcoming catalysts other than Zohydro that could enable the stock to outperform through September 2014. He kept an Outperform rating on the shares. TODAY'S PRICE ACTION: In mid-afternoon trading, Zogenix surged 83c, or 37%, to $3.07.