Zogenix files for $90 million IPO

September 7, 2010 by MassDevice staff

Zogenix Inc. files for a $90 million initial public offering to fund the development of pain medications and a needle-free injector.

Zogenix logo

Zogenix Inc. is attempting to raise $90 million through an initial public offering.

The San Diego-based company said it plans utilize the new funds to help commercialize its Sumavel DosePro drug-device combination and the clinical advancement of its ZX002 drug in a Securities & Exchange Commission filing.

The company began U.S. sales of its DosePro device, a needle-free drug-delivery system, in January as the injection system for its sumatriptan pain management drug. The combination is the company's first and only commercial product and it is seeking CE Mark approval for the system with the help of Germany-based Desitin Arzneimittel GmbH, according to the filing.

At the close of the quarter ending June 30, the company brought in $6.1 million in revenues from the Sumavel DosePro device system, but in the itemized risk section of the filing, the company listed net losses of $45.9 million in 2009 and $49.3 million for the first half of 2010. The company also listed a debt of $173.8 million and said it expects losses and negative cash flows to continue for several more years.

This is not the first IPO attempted by Zogenix, after it scuttled a 2008 attempt. Zogenix has already raised almost $200 million in equity and debt since it was founded in 2006, according to Xconomy . Its financiers include GE Capital, Oxford Finance and CIT Healthcare.

The company's stock would be traded on the NASDAQ market under the symbol ZGNX, according to the filing.