ZGNX - Zogenix: 40% Off And Fundamentals Remain Intact

• Thesis that FDA approval of Fintepla would immediately unlock value was wrong. With ZGNX down nearly 40% since, and the story still fully intact, the stock is now highly attractive.
• The recent $200M convertible debt deal surprised many.
• This large capital raise, on top of the $399M that ZGNX previously had in cash, suggests that due diligence by smart money concluded that significant shareholder value creation is coming.
• We continue to believe that Fintepla will have a strong launch, and importantly, additional clinical data for MT-1621 is expected to be presented at the WMS 2020 Congress very soon.

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