UPDATE: Brinson Patrick Initiates Zogenix at Market Putperform on Zophydro Prospects

Brinson Patrick initiated coverage on Zogenix (NASDAQ: ZGNX) with a Market Outperform rating and a $5.00 price target.

Brinson Patrick commented, "Given the number of issues surrounding the FDA's decision on Zohydro ER's approval, we had suspected the FDA would take actions that would put Zohydro ER at a marketing disadvantage to the other extended release opioids. But as a result of Zogenix's informal communications with the agency last week, we believe Zohydro ER will be approved in the next few weeks with prescribing and distribution restrictions that are similar to other extended release opioids. Not only did the FDA not ask for additional data or issue a three month extension, but in Zogenix's press release the company described Zohydro ER's REMS as “consistent with...” similar drugs."

Zogenix closed at $1.87 on Monday.