Zogenix Raises $200 Million in Convertible Senior Notes Offering

Rare Daily Staff

Zogenix said it priced an offering of $200 million aggregate principal amount of 2.75 percent convertible senior notes due 2027 in a private offering to qualified institutional buyers.

The issuance and sale of the notes are scheduled to settle on September 28, 2020, subject to customary closing conditions. Zogenix also granted the initial purchasers of the notes an option to purchase up to an additional $30 million principal amount of notes within 13 days of first issue.

Zogenix plans to use the proceeds from the offering to fund development and commercialization of Fintepla in Dravet syndrome, Lennox-Gastaut syndrome, and other potential rare diseases indications, to fund the development of MT1621 in TK2 deficiency and other general corporate purposes, such as working capital and general and administrative expenses.

Zogenix’ first rare disease therapy, Fintepla (fenfluramine) oral solution is approved by the U.S. Food and Drug Administration and is under review in Europe for the treatment of seizures associated with Dravet syndrome, a rare, severe childhood onset epilepsy. In addition, the company has two late-stage development programs underway: one for FIintepla for the treatment of seizures associated with Lennox-Gastaut syndrome, a rare childhood-onset epilepsy and another for MT1621, an investigational novel substrate enhancement therapy for the treatment of TK2 deficiency, a rare genetic disorder. MT1621 is being developed through Modis Therapeutics, a Zogenix company.