The Deal with Purdue struck out of Desperation

[Anonymous]

Purdue took advantage of Zogenix’s weak cash position, and if one thinks this was a strategic move beneficial to anyone other than Purdue, then, he or she is ignorant from a business perspective. This is a win for Purdue. My experience tells me that Zogenix will be seen as irrelevant within four - six months in context to the financial marketplace where the company places its dependence. This statement will inflame some to attempt to try vainly to contradict this assertion, and those who I anticipate will try are unable sadly to visualize the bigger picture. What I have witnessed from the company’s first trading days has been nothing short of a travesty, from mismanagement at every level of the corporate structure. From my perspective, Ann still has credibility by virtue of where she earned her education, and the other senior executives lost all their credibility at “month one” immediately following the initial launch of “Sumavel Dosepro.” The best alternative was a buyout, and I was thinking that Purdue might pursue a buyout strategy and they were able to do one better.

Remarkable, where is the exit strategy now? How will the lead banking group frame this mess into a positive and raise an additional 100 – 120 million dollars in January? How will this unknown factor weigh on the share price in advance of a secondary offering? However, an additional unknown factor that may help the company is better than expected Zohydro sales. However, the market is smart enough to recognize that the product has lost critical benefits coverage, and now a safer product will establish itself as the “go-to” brand. Zogenix is now two years away from having in its possession an apples-to-apples product. This is my two cents, yet it is now worth only one cent upon its first read due to inflation.

The only advantage observed is that you have a huge number of investors, small to huge, that are unable to see the bigger picture; thus, they are swayed quite easily into action by effective promotion and “dog and pony” shows. The “guys” who have been around the block can see right through the BS and know exactly what or what not to do in this particular situation. Nevertheless, it will be interesting, from my perspective, to see how this situation plays out. I am not insensitive to the everyday employee who is trying to put food on the table for his or her family; thus, consider using this information to your advantage or not.

 

[Anonymous]

I really have never experienced a bigger dumbass at the highest levels of any organization.

 

[Anonymous]

I really have never experienced a bigger dumbass at the highest levels of any organization.

You only need to look into a mirror. Sorry, but clarity is not your strong suit; thus, you must be part of the management team.

 

[Anonymous]

Purdue took advantage of Zogenix’s weak cash position, and if one thinks this was a strategic move beneficial to anyone other than Purdue, then, he or she is ignorant from a business perspective. This is a win for Purdue. My experience tells me that Zogenix will be seen as irrelevant within four - six months in context to the financial marketplace where the company places its dependence. This statement will inflame some to attempt to try vainly to contradict this assertion, and those who I anticipate will try are unable sadly to visualize the bigger picture. What I have witnessed from the company’s first trading days has been nothing short of a travesty, from mismanagement at every level of the corporate structure. From my perspective, Ann still has credibility by virtue of where she earned her education, and the other senior executives lost all their credibility at “month one” immediately following the initial launch of “Sumavel Dosepro.” The best alternative was a buyout, and I was thinking that Purdue might pursue a buyout strategy and they were able to do one better.

Remarkable, where is the exit strategy now? How will the lead banking group frame this mess into a positive and raise an additional 100 – 120 million dollars in January? How will this unknown factor weigh on the share price in advance of a secondary offering? However, an additional unknown factor that may help the company is better than expected Zohydro sales. However, the market is smart enough to recognize that the product has lost critical benefits coverage, and now a safer product will establish itself as the “go-to” brand. Zogenix is now two years away from having in its possession an apples-to-apples product. This is my two cents, yet it is now worth only one cent upon its first read due to inflation.

The only advantage observed is that you have a huge number of investors, small to huge, that are unable to see the bigger picture; thus, they are swayed quite easily into action by effective promotion and “dog and pony” shows. The “guys” who have been around the block can see right through the BS and know exactly what or what not to do in this particular situation. Nevertheless, it will be interesting, from my perspective, to see how this situation plays out. I am not insensitive to the everyday employee who is trying to put food on the table for his or her family; thus, consider using this information to your advantage or not.

Tell me more. What exactly does this waiver provide to each party? Does it mean they both agree not to challenge each other's IP?

 

[Anonymous]

You only need to look into a mirror. Sorry, but clarity is not your strong suit; thus, you must be part of the management team.

I think I know who the poster was referencing. And, yes, the reference was aimed at San Diego.

 

[Anonymous]

I really have never experienced a bigger dumbass at the highest levels of any organization.

I'm not so sure. They were dealt a tough hand to play. When did they acquire Zohydro? I think it was ages ago, before the abuse-deterrent buzz saw. The new OC changed everything, but what do you do? Shut down the development program? I'm amazed they got it approved, frankly. I don't know anything about how they are pricing or marketing it, though. If it's priced right I doubt managed care would care about abuse. They never have.

 

[Anonymous]

I'm not so sure. They were dealt a tough hand to play. When did they acquire Zohydro? I think it was ages ago, before the abuse-deterrent buzz saw. The new OC changed everything, but what do you do? Shut down the development program? I'm amazed they got it approved, frankly. I don't know anything about how they are pricing or marketing it, though. If it's priced right I doubt managed care would care about abuse. They never have.

Your absolutely right, priced appropriately, Zyohydro would be on most plans other than state Medicaid/HMO PBMs formularies IMHO. Insurance could care less re abuse.

 

[Anonymous]

if i were them, i'd price it to sell, make some cash to keep the lights on, and then coast on fumes until the new abuse-deterrent form is launched.

 

[Anonymous]

Purdue took advantage of Zogenix’s weak cash position, and if one thinks this was a strategic move beneficial to anyone other than Purdue, then, he or she is ignorant from a business perspective. This is a win for Purdue. My experience tells me that Zogenix will be seen as irrelevant within four - six months in context to the financial marketplace where the company places its dependence. This statement will inflame some to attempt to try vainly to contradict this assertion, and those who I anticipate will try are unable sadly to visualize the bigger picture. What I have witnessed from the company’s first trading days has been nothing short of a travesty, from mismanagement at every level of the corporate structure. From my perspective, Ann still has credibility by virtue of where she earned her education, and the other senior executives lost all their credibility at “month one” immediately following the initial launch of “Sumavel Dosepro.” The best alternative was a buyout, and I was thinking that Purdue might pursue a buyout strategy and they were able to do one better.

Remarkable, where is the exit strategy now? How will the lead banking group frame this mess into a positive and raise an additional 100 – 120 million dollars in January? How will this unknown factor weigh on the share price in advance of a secondary offering? However, an additional unknown factor that may help the company is better than expected Zohydro sales. However, the market is smart enough to recognize that the product has lost critical benefits coverage, and now a safer product will establish itself as the “go-to” brand. Zogenix is now two years away from having in its possession an apples-to-apples product. This is my two cents, yet it is now worth only one cent upon its first read due to inflation.

The only advantage observed is that you have a huge number of investors, small to huge, that are unable to see the bigger picture; thus, they are swayed quite easily into action by effective promotion and “dog and pony” shows. The “guys” who have been around the block can see right through the BS and know exactly what or what not to do in this particular situation. Nevertheless, it will be interesting, from my perspective, to see how this situation plays out. I am not insensitive to the everyday employee who is trying to put food on the table for his or her family; thus, consider using this information to your advantage or not.

We learn it is a 100 million dollar offering and Cantor Fitzgerald & Co gets the first kick at the can with a $25 million chunk of that 100 million if share volume and the stock price oblige … any questions?

If one is working with an effective senior management team, then, the stock price would correlate to the team and dilution would be a non-issue. Without effective leadership, you have an outdated ship crusted with barnacles navigating through uncharted waters without the necessary tools too even pinpoint their approximate location. The only positive that I see is that the voice of the company can apparently sell “the Brooklyn Bridge” again, again, and again. The bridge is less valuable today, nevertheless, he or she has the ability to frame a good story to the financial community. What is surprising truly from my perspective, and in context to the institutional investors, is the level of research that they have applied prior to committing their own or investor funds. I am unable to grasp that this level of incompetence exists within society and the marketplace and it is dumbfounding at best.

 

[Anonymous]

We learn it is a 100 million dollar offering and Cantor Fitzgerald & Co gets the first kick at the can with a $25 million chunk of that 100 million if share volume and the stock price oblige … any questions?

If one is working with an effective senior management team, then, the stock price would correlate to the team and dilution would be a non-issue. Without effective leadership, you have an outdated ship crusted with barnacles navigating through uncharted waters without the necessary tools too even pinpoint their approximate location. The only positive that I see is that the voice of the company can apparently sell “the Brooklyn Bridge” again, again, and again. The bridge is less valuable today, nevertheless, he or she has the ability to frame a good story to the financial community. What is surprising truly from my perspective, and in context to the institutional investors, is the level of research that they have applied prior to committing their own or investor funds. I am unable to grasp that this level of incompetence exists within society and the marketplace and it is dumbfounding at best.

Oh I forgot to mention the short position, that is the key to a successful placement. F** the investors, fund the offering, make a profit, and it looks like a winner. The new strategy to "get it done" the new concept of ethics, one has to experience the bad to see what it feels like. Change course, and change your course now.

 

[Anonymous]

We learn it is a 100 million dollar offering and Cantor Fitzgerald & Co gets the first kick at the can with a $25 million chunk of that 100 million if share volume and the stock price oblige … any questions?

If one is working with an effective senior management team, then, the stock price would correlate to the team and dilution would be a non-issue. Without effective leadership, you have an outdated ship crusted with barnacles navigating through uncharted waters without the necessary tools too even pinpoint their approximate location. The only positive that I see is that the voice of the company can apparently sell “the Brooklyn Bridge” again, again, and again. The bridge is less valuable today, nevertheless, he or she has the ability to frame a good story to the financial community. What is surprising truly from my perspective, and in context to the institutional investors, is the level of research that they have applied prior to committing their own or investor funds. I am unable to grasp that this level of incompetence exists within society and the marketplace and it is dumbfounding at best.

Having worked in the past for a Roger Hawley many years ago, he created an environment where people wanted to work for him and be a part of the "culture". Not to mention his ties to the financial community, Zogenix will "rightside here soon from a stock price I believe. When I saw that he was willing to get rid of Mark T. who had been by his side since the old Glaxo days, failure is not an option. Close to that time they also a major reduction of the work force in the company to slow the burn from failing Sum Dosepro sales. Now a smart move into the orphan disease space in a terrible disease state like Duvet Syndrome, who isn't going to pay for an unmet need in little children. Not to mention Zogenix can charge a lot and get paid with patent protection. Smart

 

[Anonymous]

Having worked in the past for a Roger Hawley many years ago, he created an environment where people wanted to work for him and be a part of the "culture". Not to mention his ties to the financial community, Zogenix will "rightside here soon from a stock price I believe. When I saw that he was willing to get rid of Mark T. who had been by his side since the old Glaxo days, failure is not an option. Close to that time they also a major reduction of the work force in the company to slow the burn from failing Sum Dosepro sales. Now a smart move into the orphan disease space in a terrible disease state like Duvet Syndrome, who isn't going to pay for an unmet need in little children. Not to mention Zogenix can charge a lot and get paid with patent protection. Smart

I make it very clear that I did not highlight a specific individual in my comments. You came to that conclusion by attribution, thus, your imagination invented that Roger Hawley is targeted in the context of my comments. Let me state my comments another way. I will not place any attribution onto any party in my comments. I will examine the situation from what I have learned from the action(s) or inaction(s) of the company as a whole (excluding the sales reps that may or may not contribute benefits to the company person to person, and excluding mid-level managers within that same line of thinking).

What I have witnessed in the context of the “whole company” are the following (to be fair, I will exclude the first few months of operating as a publicly traded company): Firstly, an inability to identify the size of the market of Sumavel Dosepro. Secondly, the inability for management to facilitate change rapidly and radically in response to the size of the market, thus, conserve investor’s capital, and prevent dilution as the stock price continued to decline. Thirdly, a good leader knows how to motivate his or her employees regardless of the circumstances that exist or one perceives exist. The employees want to emulate the attributes and virtues of a good leader and I saw nothing but confusion in that respect. Fourthly, the company was unable to deflect the negative consequences associated to the approval of Zohydro sans any deterrent properties. I was able to see with perfect clarity this coming, and I was curious as to why the company was unable to understand that the backlash was inevitable. Thus, I thought the better strategy was to introduce Zohydro with some kind of deterrence rather than none. The company’s strategy was flawed and it suffered by its own contribution. Other investors concluded that everyone was out to destroy them in context of the backlash that was unleashed; however, that could not be farther from the truth. That was another invented reality, it was the company’s contribution and to a lesser degree the FDA’s contribution that created the problem. I recognize that the combined expertise that exists at Zogenix is significant, thus, something is missing from the equation that has placed them where they are today.

I am someone with a tiny speck of knowledge, and even though I operate with minimal knowledge, I was able to determine with great accuracy, future share price from week to week. I am not patting myself on the back with the previous statement nor am I soliciting for kudos; I am simply suggesting that what I saw was something broken within the context of the whole company. The damage that the company has endured is a reality. Will a positive exit point exist for the investment group, individual shareholders, or institutional investors? I think it is possible; however, all the dominoes will have to fall into place perfectly for this to occur and I am less certain that they will fall that way. The company continues to dig itself further into a deeper hole by making the moves that I have previously eluded, and it is already deep enough for its operations to extricate rapidly from this position. Additionally, there are too many uncertainties that exist, thus, I am unable to see a hugely positive outcome.

 

[Anonymous]

I make it very clear that I did not highlight a specific individual in my comments. You came to that conclusion by attribution, thus, your imagination invented that Roger Hawley is targeted in the context of my comments. Let me state my comments another way. I will not place any attribution onto any party in my comments. I will examine the situation from what I have learned from the action(s) or inaction(s) of the company as a whole (excluding the sales reps that may or may not contribute benefits to the company person to person, and excluding mid-level managers within that same line of thinking).

What I have witnessed in the context of the “whole company” are the following (to be fair, I will exclude the first few months of operating as a publicly traded company): Firstly, an inability to identify the size of the market of Sumavel Dosepro. Secondly, the inability for management to facilitate change rapidly and radically in response to the size of the market, thus, conserve investor’s capital, and prevent dilution as the stock price continued to decline. Thirdly, a good leader knows how to motivate his or her employees regardless of the circumstances that exist or one perceives exist. The employees want to emulate the attributes and virtues of a good leader and I saw nothing but confusion in that respect. Fourthly, the company was unable to deflect the negative consequences associated to the approval of Zohydro sans any deterrent properties. I was able to see with perfect clarity this coming, and I was curious as to why the company was unable to understand that the backlash was inevitable. Thus, I thought the better strategy was to introduce Zohydro with some kind of deterrence rather than none. The company’s strategy was flawed and it suffered by its own contribution. Other investors concluded that everyone was out to destroy them in context of the backlash that was unleashed; however, that could not be farther from the truth. That was another invented reality, it was the company’s contribution and to a lesser degree the FDA’s contribution that created the problem. I recognize that the combined expertise that exists at Zogenix is significant, thus, something is missing from the equation that has placed them where they are today.

I am someone with a tiny speck of knowledge, and even though I operate with minimal knowledge, I was able to determine with great accuracy, future share price from week to week. I am not patting myself on the back with the previous statement nor am I soliciting for kudos; I am simply suggesting that what I saw was something broken within the context of the whole company. The damage that the company has endured is a reality. Will a positive exit point exist for the investment group, individual shareholders, or institutional investors? I think it is possible; however, all the dominoes will have to fall into place perfectly for this to occur and I am less certain that they will fall that way. The company continues to dig itself further into a deeper hole by making the moves that I have previously eluded, and it is already deep enough for its operations to extricate rapidly from this position. Additionally, there are too many uncertainties that exist, thus, I am unable to see a hugely positive outcome.

"Launching with some abuse-deterrent technology." So what would have been the solution? Delay launch until a new formulation could have been developed? Easier said than done. Witness Remoxy.

 

[Anonymous]

So what's the timeline for Purdue to pay us off to sell their ER hydro?

 

[Anonymous]

can someone explain exactly what this deal means? i've read the press releases and have no idea. i basically thought it meant both companies agree not to go after each other's IP.

 

[Anonymous]

For $10M we gave up our 3 yr market exclusivity on commercializing an ER hydrocodone in exchange for Purdue giving up their 3 yr market exclusivity on an ER hydrocodone with ADT. They could've launched at risk b/c we have no $$ to fight them anyway, but this is a cleaner way for them to launch Feb 1. We needed their exclusivity dropped or we wouldn't be able to launch our ADT later in the spring (assuming it gets FDA approval). But don't kid yourself, Zogenix needed the $10 M to keep the lights on just a little bit longer. The company is in deeper debt than RH wants you to believe. You should all be looking for jobs.

 

[Anonymous]

For $10M we gave up our 3 yr market exclusivity on commercializing an ER hydrocodone in exchange for Purdue giving up their 3 yr market exclusivity on an ER hydrocodone with ADT. They could've launched at risk b/c we have no $$ to fight them anyway, but this is a cleaner way for them to launch Feb 1. We needed their exclusivity dropped or we wouldn't be able to launch our ADT later in the spring (assuming it gets FDA approval). But don't kid yourself, Zogenix needed the $10 M to keep the lights on just a little bit longer. The company is in deeper debt than RH wants you to believe. You should all be looking for jobs.

Interesting. Why would Purdue do this? If they had Zogenix by the balls anyway, why not take Zogenix to court and crush them with litigation?

 

[Anonymous]

Having worked in the past for a Roger Hawley many years ago, he created an environment where people wanted to work for him and be a part of the "culture". Not to mention his ties to the financial community, Zogenix will "rightside here soon from a stock price I believe. When I saw that he was willing to get rid of Mark T. who had been by his side since the old Glaxo days, failure is not an option. Close to that time they also a major reduction of the work force in the company to slow the burn from failing Sum Dosepro sales. Now a smart move into the orphan disease space in a terrible disease state like Duvet Syndrome, who isn't going to pay for an unmet need in little children. Not to mention Zogenix can charge a lot and get paid with patent protection. Smart

Just curious, what do you think about your comment today? Are you still a towel boy eager to wipe the sweat from your man's brow? Maybe you learned something from this exercise. I explained that your future inextricably intertwined with this company, would be interesting.
However, I have empathy for you and any other individuals who were unable to see “the forest through the trees;” moreover, it is puzzling that some remain loyal to this day, unable to position themselves outside and far away from the cave of shadows.

 

[Anonymous]

*** End ***

 

[Anonymous]

Just curious, what do you think about your comment today? Are you still a towel boy eager to wipe the sweat from your man's brow? Maybe you learned something from this exercise. I explained that your future inextricably intertwined with this company, would be interesting.
However, I have empathy for you and any other individuals who were unable to see “the forest through the trees;” moreover, it is puzzling that some remain loyal to this day, unable to position themselves outside and far away from the cave of shadows.

I saw it. I have told many personally to pull their heads from their ass to see the light. most tried. the industry is shrinking. so that has left everyone interviewing to get out while the the fat man makes ontime payments to maintain his 2.5M boat in the harbor. Worst CEO ever. Had a vision. Lacked the courage, or intelligence, to surround himself with people that would excel in drug commercialization. No more Z team.