Zogenix secures $35M financing for commercial launch of SUMAVEL DosePro needle-free delivery system

Zogenix, Inc. ("Zogenix"), a privately held pharmaceutical company, announced that it has secured a $35 million debt facility led by Oxford Finance Corporation which also included Silicon Valley Bank.  The facility consists of a $25 million term loan and a $10 million revolving line of credit.  Concurrently, all existing Zogenix investors, including Clarus Ventures, Domain Associates, Scale Venture Partners, Thomas, McNerney & Partners, Abingworth Management, and Chicago Growth Partners, have provided an additional $15 million investment.

The financing will be used to satisfy working capital needs in the commercial launch of SUMAVEL™ DosePro™ (sumatriptan injection) needle-free delivery system, the company's first FDA-approved product, and the ongoing Phase 3 clinical development program of ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain.  Proceeds will also be used to fully repay the outstanding balance of an existing term loan.

"This funding enhances our financial strength as we continue to focus on the successful launch of our first product, SUMAVEL DosePro," said Ann Rhoads, chief financial officer at Zogenix.  "The additional support from our investors represents their commitment to the growth of our company and the development of our pipeline."

"Oxford is pleased to participate in the financing package Zogenix has secured to further the growth of its company," said Chris Herr, managing director of Oxford Finance Corporation. "Zogenix has a strong management team that is leading their FDA-approved product to commercial success."

"The financing we are providing Zogenix will offer the flexibility the company needs to continue to meet its strategic objectives," said Michael White, senior relationship manager, Life Sciences, from Silicon Valley Bank in San Diego. "We are pleased to help Zogenix and many other life science companies in the San Diego market meet their goals."

SOURCE Zogenix, Inc.