MELA Sciences, Inc. (NASDAQ:MELA), skyrocketed 68.21% in the morning trade and seems to gain much more from this percentage. It is also proving itself to be the most volatile stock of the session. The stock is showing unusual surge in volume by exchanging hands with 5.00M shares as compared to its average volume of 221,424.00 shares.
MELA Sciences, Inc., a medical device company, designs, develops, and commercializes a non-invasive point-of-care instrument to aid in the detection of melanoma. The companys principal product, MelaFind, comprises of a hand-held component that emits light of multiple wavelengths to capture digital data from clinically atypical pigmented skin lesions, which is then analyzed utilizing classification algorithms trained on its proprietary database of melanomas and benign lesions to provide information to assist in the administration of the patient’s disease, counting information useful in the decision of whether to biopsy the lesion.
On the other side, Zogenix, Inc. (NASDAQ:ZGNX), is showing its volatile behavior carrying beta value of 1.39. This stock is also showing an unusual surge in its volume as 9.77M shares exchanged hands as compared to its average volume of 3.50M shares.
Zogenix, Inc. (ZGNX), a pharmaceutical corporation developing and commercializing products for the treatment of central nervous system (CNS) disorders, declared that it has reached a definitive contract to sell its Zohydro(R) ER (hydrocodone bitartrate) business to Pernix Therapeutics (PTX) for $100 million plus regulatory and sales milestones up to $283.5 million. Both companies plan to transition the Zogenix sales team and other select employees to Pernix.
This transaction enables Zogenix to planned ally shift focus to its late-stage CNS clinical pipeline highlighted by two promising product candidates:
- ZX008, which has orphan drug designation in the US and EU for the treatment of Dravet syndrome and is predictable to enter Phase 3 development this year, and;
- Relday, a unique long-acting injectable formulation of risperidone for the maintenance treatment of schizophrenia that is predictable to be ready for Phase 3 studies in the first half of 2016.
The sale of Zohydro ER to Pernix significantly reduces operating expenses, eliminates all R&D expenses related to ongoing abuse-deterrent formulations, and further enhances the Corporation’s financial strength with non-dilutive capital.
Under terms of the contract, at closing, Pernix will pay Zogenix $30 million in cash, $20 million in ordinary stock and provide a $50 million short-term promissory note. Ten percent of the cash consideration will be deposited into escrow to fund potential indemnification claims for a period of 12 months, plus up to an additional $7 million to be deposited into escrow upon repayment of the promissory note. The Corporation is also eligible to receive $12.5 million upon approval of ZX007, a tablet formulation of extended-release hydrocodone with abuse-deterrent properties which is presently in development in partnershipwith Altus Formulation. In addition, Zogenix is eligible to receive cash payments of up to $271 million based on the achievement of pre-determined annual product sales milestones for Zohydro ER and ZX007. Pernix will also purchase a pre-defined amount of Zohydro ER product inventory.
The Zohydro ER NDA and related investigational new drug applications will be transferred to Pernix right away upon closing and Pernix will assume responsibility for Zogenix’s royalty and manufacturing obligations to Daravita Limited, an indirect wholly-owned partner of Alkermes plc. Upon closing, Pernix will also assume regulatory and financial responsibility for the ongoing efforts related to amending the Zohydro ER label to comprise abuse-deterrent claims and for the development of ZX007, with Zogenix providing assistance in the development of both programs under a Transitional Services Contract for up to 18 months following closing. The transaction is predictable to close in April 2015, subject to customary closing conditions.
Leerink Partners LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to Zogenix on the transaction.
Zogenix, Inc. (ZGNX) is a pharmaceutical corporation committed to developing and commercializing therapies that address specific clinical needs for people living with pain-related conditions and CNS disorders who need innovative treatment alternatives to assist them return to normal daily functioning.
