UPDATE: Stifel Nicolaus Downgrades Zogenix to Hold Following FDA Panel

Stifel Nicolaus reduced its rating on Zogenix

from Buy to Hold and removed its $6 price target. Stifel Nicolaus said, "The FDA Advisory Committee for Zohydro ER (single-entity hydrocodone for moderate-severe chronic pain) voted 11-2 (one abstention) against approval, highlighting concern about the opioid abuse epidemic by adding yet another non tamper-resistant, high-dose opioid. … [I]ncomplete information about how to limit the addressable population, concern regarding REMS implementation, and lack of tamper-resistance were key sticking points. Although FDA may still approve Zohydro given its legal/regulatory mandate (PDUFA 3/1/13), we are downgrading Zogenix given increased risk on its key growth driver." Zogenix closed at $2.36 on Friday.