ZGNX Tax Loss selling over ?? DD Almost at Cash Insiders bought 7.1 mill shares @ $2 now $1.57 DD on ZGNX 99 Mill $$$ Mkt Cap 71 Mill in Cash & approved Migraine drug doing 40 mill in sales 2011 & projected to do 80 mill in 2012 BUT their big dollar drug has phase 3 trials completed & positive on their ( First to Market ) Extended release Hydrocodone drug & also ( First to Market ) APAP free or Acetaminophen free ( causes Liver Toxicity) & FDA cracking down on it. ZGNX according to last CC has already been approached by Pharmas looking to partner up on drug & will make a decision in early 2012 whether to partner or go alone. Why go alone ??? Huge market for Hydrocodone ( Over 6 Billion Dollars a Year ) & Oppenhiemer has opined that ZGNX drug will do around 500 Million a year in sales. Insiders know the potential & have bought over 56% of the total outstanding shares 36.4 Million shares including the 7.1 Million shares purchased in September. Coupled with the 18 Million shares just purchased in the last 3 months by Institutions which now totals over 25 million shares & growing . BTW 18 million shares bought 11 thousand shares sold ???? FLOAT is around 4 Million shares 4 MILLION ...This is a sure shot double/triple/??? easily could be another INHX $2 to $10 quickly on FDA or Partner news or a straight buyout..INSANE Valuation here though
Oppenheimer anticipates positive top-line Phase III results from ZGNX's Zohydro by the end of August, potentially driving the shares to the ~$5-6 range. As a reminder, Zohydro is ZGNX's novel, oral, single-entity controlled-release formulation of hydrocodone, intended to treat moderate to severe chronic pain. Our positive bias on Phase III results is based on strong phase II data, as well as the well-understood safety/efficacy profile of the hydrocodone class. If approved, they estimate Zohydro's relative advantages in safety and dosing convenience could help garner a meaningful portion of the branded hydrocodone market, resulting in peak sales of ~$500 mln. On positive data, they anticipate ZGNX to file an NDA in 2012, followed by an acceleration in partnership discussions later in 2012.
No dilution till 2013 & that's IF they go it alone if they partner they will have 100's of millions of dollars....
From S.E.C. filing of latest 10Q
As of September 30, 2011, we had cash and cash equivalents of $70.8 million. We believe that our cash and cash equivalents as of September 30, 2011, together with future revenue and borrowings available under our $10.0 million revolving credit facility, will be sufficient to fund our operations into the second quarter of 2013.
