Eliminates Monthly Principal and Interest Payments
SAN DIEGO, Aug. 1, 2012 (GLOBE NEWSWIRE) -- Zogenix, Inc. (Nasdaq:ZGNX), a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain, today announced that it has repaid all amounts outstanding under its amended and restated loan and security agreement, or loan agreement, with Oxford Finance LLC and Silicon Valley Bank. This included payment of $19.5 million for principal and interest outstanding under the loan agreement. Zogenix was also required to make a final payment of $1.2 million and a prepayment premium of $0.4 million, or 2% of the outstanding principal balance. In conjunction with the repayment, Zogenix also paid a $0.1 million prepayment premium to terminate its $10.0 million revolving credit facility with Oxford Finance LLC and Silicon Valley Bank, which did not have an outstanding balance.
Ann Rhoads, chief financial officer of Zogenix, said, "We utilized a portion of the net proceeds from our $60.7 million equity offering in July to eliminate the outstanding debt from our loan agreement with Oxford Finance LLC and Silicon Valley Bank. This will benefit our financial results by eliminating approximately $3.5 million per quarter in principal and interest payments due under the loan agreement. We are appreciative of both Oxford Finance and Silicon Valley Bank for providing the loan facilities during a critical stage of the Company's growth."
Ms. Rhoads added, "The remaining proceeds from the offering will add to our financial resources as we continue developing the Company's product portfolio. Our current cash position gives us sufficient capital to continue the commercialization of SUMAVEL® DosePro®, advance through potential commercialization of Zohydro™ ER, and move forward with our earlier stage candidate, Relday™. Together, these three programs represent a potentially significant growth opportunity for Zogenix."
Zogenix, Inc. (Nasdaq:ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. Zogenix's first commercial product, SUMAVEL® DosePro® (sumatriptan injection) Needle-free Delivery System, was launched in January 2010 for the acute treatment of migraine and cluster headache. Zogenix's lead investigational product candidate, Zohydro™ ER (hydrocodone bitartrate) is an oral, single-entity (without acetaminophen) novel extended-release formulation of various strengths of hydrocodone intended for administration every 12 hours for around the clock management of moderate to severe chronic pain. Zogenix's second DosePro investigational product candidate, Relday™, is a proprietary, long-acting injectable formulation of risperidone for the treatment of schizophrenia. In May 2012, Zogenix submitted to the FDA a New Drug Application for Zohydro ER and an Investigational New Drug Application for Relday. The FDA assigned a PDUFA target action date of March 1, 2013 for the Zohydro ER NDA.
For additional information, please visit www.zogenix.com.
Forward Looking Statements
Zogenix cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "indicates," "will," "intends," "potential," "suggests," "assuming," "designed" and similar expressions are intended to identify forward-looking statements. These statements are based on the company's current beliefs and expectations. These forward-looking statements include statements regarding the benefit that the elimination of amounts outstanding under the loan agreement will have on Zogenix's financial results; the extent and ability of Zogenix's current cash position to advance its current product and product candidates; and the potential growth opportunity for Zogenix. The inclusion of forward-looking statements should not be regarded as a representation by Zogenix that any of its plans will be achieved. Actual results may differ from those set forth in this release due to the risk and uncertainties inherent in Zogenix's business, including, without limitation: Zogenix's ability and the ability of its co-promotion partner to successfully market SUMAVEL DosePro to its customers; the potential for delays associated with any additional data required to be submitted by Zogenix in support of the NDA for Zohydro ER; the potential for Zohydro ER to receive regulatory approval on a timely basis or at all; inherent risks of clinical development of Relday and Zogenix's dependence on its collaboration with DURECT Corporation to develop Relday; and other risks described in the company's prior press releases and filings with the Securities and Exchange Commission.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Zogenix undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
SUMAVEL ®, DosePro ®, Relday™ and Zohydro™ ER are trademarks of Zogenix, Inc.
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