Is Zogenix A Good Stock To Buy Now?

Shares of Zogenix Inc (NASDAQ:ZGNX) have dropped by nearly 37% during the last 30 days, which may have provided the perfect impetus for Kolchinsky to take up his sizable position. However, the stock shows a notable growth of 21.46% year-to-date.

For the second quarter, Zogenix Inc (NASDAQ:ZGNX) reported revenue of $7.4 million, up from $6.7 million in the same quarter last year. The company spent $6.2 million on research and development during the quarter, representing a significant increase from $3.2 million in the second quarter a year ago. Zogenix Inc (NASDAQ:ZGNX) posted a loss from continuing operations of $6.7 million, versus income of $77.5 million in the same quarter of 2014. Net income, including discontinued operations, was $72.5 million, or $3.78 per share, up from income of $62.9 million, or $3.59 per share, for the same quarter a year ago.

During the second quarter, the total number of hedge funds among those that we track holding Zogenix Inc (NASDAQ:ZGNX) rose to 15 at the end of June from 14 at the end of the first quarter, while the aggregate value of their investments increased to $65.25 million compared to $40.10 million held in shares at the end of the first quarter.

Other shareholders that see value in Zogenix Inc (NASDAQ:ZGNX) include Kevin Kotler’s Broadfin Capital, and Baker Bros. Advisors, led by Julian Baker and Felix Baker. Broadfin Capital holds 10.74 million shares, while Baker Bros. owns 10.03 million shares of the company as of June 30.

Disclosure: None