Zogenix, Inc. (ZGNX) Misses Q1 EPS by 3c

Zogenix, Inc. (NASDAQ: ZGNX) reported Q1 EPS of ($0.20), $0.03 worse than the analyst estimate of ($0.17). Revenue for the quarter came in at $7.7 million versus the consensus estimate of $8.71 million.

2014 Full Year Expense Guidance

Zogenix is reaffirming its full year 2014 expense guidance of $110 - $120 million in combined research and development and selling, general and administrative expenses.

Zogenix is not providing specific guidance on expected 2014 revenues, however the Company is providing guidance on expected gross margin on Zohydro ER net revenue in the low eighties on a percentage basis. Additionally, the Company will record royalty expense for royalties payable to Alkermes at a mid single-digit percentage of net Zohydro ER sales.

Subsequent to the closing of the sale of its SUMAVEL DosePro migraine therapy business, the Company also expects to record revenues for the ongoing manufacture and supply of SUMAVEL DosePro to Endo at a low single-digit markup to its cost of manufacturing, with such costs recorded as a component of cost of goods sold. Also, subsequent to closing, the Company will not record ongoing interest expense on its debt obligation to HealthCare Royalty Partners, which will be repaid at closing.

For earnings history and earnings-related data on Zogenix, Inc. (ZGNX) click here.

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