Zogenix Inc. sells Zohydo (hydrocodone bitartrate) to Pernix Therapeutics for up to $283.5 million

Zogenix, Inc. announced today that it has entered into a definitive agreement to sell its Zohydro ER (hydrocodone bitartrate) business to Pernix Therapeutics 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 strategically shift focus to its late-stage CNS clinical pipeline highlighted by two promising product candidates: 1.ZX 008, which has orphan drug designation in the US and EU for the treatment of Dravet syndrome and is expected to enter Phase 3 development this year, and; 2. Relday, a unique long-acting injectable formulation of risperidone for the maintenance treatment of schizophrenia that is expected 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 Company's financial strength with non-dilutive capital.