Down 52% in 3 Months, Is This Biotech Stock a Buy?
On Feb. 27, shares of Zogenix (NASDAQ:ZGNX), a California-based pharmaceutical company, slid by about 9%. This drop came on the heels of the company's announcement that the U.S. Food and Drug Administration (FDA) extended the review period for Fintepla, a product for which Zogenix submitted a New Drug Application (NDA) in September 2019. Zogenix initially expected a decision from the FDA in the first quarter, but the company now expects an answer from the health industry regulator in late June.
After its most recent slump, Zogenix's shares are down by 52% over the past three months, while the S&P 500 is down by 12.7% over the same period. Does this represent a buying opportunity for investors?
Zogenix currently has no approved products on the market; hence the importance of receiving regulatory approval for Fintepla as soon as possible. Fintepla is a potential treatment for seizures associated with Dravet syndrome, a rare form of epilepsy. Fintepla is also being investigated as a treatment for seizures associated with Lennox-Gastaut syndrome (LGS), another rare form of epilepsy. Zogenix originally submitted an NDA to the FDA in February 2019, along with a marketing authorization application to the European Medicine Agency (EMA) for Fintepla around the same time.
Source Fool.com
