ZGNX - Zogenix jumps on positive read through from GW Pharma/Jazz deal

Zogenix (ZGNX) climbing 18% in premarket trading on a positive read through from Jazz Pharmaceuticals'  (JAZZ) $7.2b planned purchase of GW Pharmaceuticals (GWPH).The deal values GWPH at 9.4x EV/consensus 2021 estimated sales and if one applies a similar multiple for Zogenix it gets to a value of $58/share for Zogenix, according to Mizuho analyst Difei Yang.The GWPH/JAZZ deal appears to further validate the commercial potential of rare epilepsy-targeting therapeutics, Yang writes.ZGNX remains buy at Mizuho, PT $55.Recall Dec. 21, Zogenix's Fintepla wins European nod for rare childhood epilepsy.

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Zogenix jumps on positive read through from GW Pharma/Jazz deal