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Loss Narrows at Zogenix

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Zogenix, Inc.’s (ZGNX - Free Report) fourth-quarter 2012 adjusted net loss of 16 cents per share was narrower than the year-ago loss of 36 cents per share and the Zacks Consensus Estimate of a loss of 17 cents per share. The narrower loss was primarily attributable to lower selling, general and administrative (SG&A) expenses incurred by Zogenix in the final quarter of 2012.

Quarterly Highlights

Total revenues in the reported quarter climbed 20.2% to $9.5 million. Revenues marginally missed the Zacks Consensus Estimate of $10 million. Entire revenues in the final quarter of 2012 came from net product sales.

Revenues in the year-ago quarter included contract revenue worth $2.5 million pertaining to Zogenix‘s co-promotion agreement with Astellas Pharma . The deal, which was regarding Zogenix’s injectable migraine and cluster headache therapy Sumavel DosePro, was terminated on Mar 31, 2012.

Research and development (R&D) expenses came in at $5.4 million, flat year over year. SG&A expenses declined 33.1% to $11.9 million. The decline was primarily attributable to the $5.7 million reduction in service fees to Astellas Pharma following the termination of Zogenix’s co-promotion agreement with the latter.

Annual Results

For full year 2012, Zogenix suffered a loss of 72 cents per share, compared with the year-ago loss of $1.97 per share. The Zacks Consensus Estimate for 2012 hinted at a loss of 79 cents per share. Total revenues climbed 17.8% to $44.3 million, short of the Zacks Consensus Estimate of $45 million.

Zogenix carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the pharma sector include Lannett Company, Inc. (LCI - Free Report) and WuXi PharmaTech (Cayman) Inc. . Both the stocks carry a Zacks Rank #1 (Strong Buy).

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