UPDATE: Oppenheimer Assumes Coverage on Zogenix with Perform Rating on Fair Valuation

In a report published Friday, Oppenheimer analyst Akiva Felt assumed coverage on

with a Perform rating. In the report, Oppenheimer noted, “We are assuming coverage of Zogenix with a Perform rating as we believe shares are fairly priced at current levels, largely reflecting uncertainties around the potential approval of the company's lead asset, Zohydro ER. Management expects an FDA decision in the next 1-3 months. Headwinds to approval largely relate to the lack of tamper-resistant (TR) technology in Zohydro ER. However, the FDA's decision to allow generic Opana ER (which does not have TR properties as the branded version), appears to run counter to that belief, rendering the Zohydro outcome as a toss-up, in our view. Zogenix also markets Sumavel DosePro for the treatment of migraines. Although Sumavel sales have been somewhat below expectations, the product may attract strategic interest.” Zogenix closed on Thursday at $1.60.