Top biotech pick for 2012: Zogenix (SeekingAlpha) - Jan 3, 2012 - Assuming that Sumavel DosePro can gain a conservative 1% share of the 12.2M triptan prescriptions per year, this translates into annual Sumavel revenue of $59M according to Zogenix's projections; Regulatory approval to market Sumavel DosePro has also been granted in Germany, United Kingdom, Denmark, Sweden, & Norway
Financial update • Regulatory update • Migraine
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Zogenix’s Valuable Drug Assets
Sumavel DosePro (Drug Asset #1)
The choice of Stephen Farr as the first President of Zogenix was a big clue to what product and niche market Cam Garner and company had their eye on. Farr was recruited from Aradigm Corporation where he served as Senior Vice President and Chief Scientific Officer. In 2003, Farr led the effort at Aradign to identify and acquire the novel drug delivery technology now called DosePro. He also led the development of DosePro’s application for the drug, sumatriptan, for the treatment of migraines.
Just three months after its May 2006 founding, Zogenix acquired the product, Intraject Needle Free Technology (later to be renamed DosePro) and related assets from Aradigm Corporation for $4 million.
In just 18 months after acquiring this technology, a New Drug Application (NDA) for sumatriptan DosePro was submitted to the FDA. Just over a year later, the FDA approved Sumavel DosePro needle-free delivery system to treat migraine headaches.
As of January 2010, Sumavel DosePro is now being commercially sold in the U.S. and Europe as the first single use, needle-free product for treating acute migraine and cluster headaches. Sumavel unit sales and prescription sequential growth have been very robust in this $3.5B market.
Sales growth of Sumavel DosePro since FDA approval:
Q1 2010: $1.9M
Q2 2010: $4.2M
Q3 2010: $5.7M
Q4 2010: $6.8M
Q1 2011: $7.5M
Q2 2011: $8.7M
Assuming that Sumavel DosePro can gain a conservative 1% share of the 12.2 million triptan prescriptions per year, this translates into annual Sumaval revenue of $59 million according to Zogenix’s projections. Regulatory approval to market Sumavel DosePro has also been granted in Germany, United Kingdon, Denmark, Sweden, and Norway.
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