Why Zogenix, Inc. Was a House of Pain for Investors

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Zogenix just took a painful one-two punch on the market today, causing shares to fall 15%. First, the company reported Q4 earnings, which missed estimates; but that wasn't the real story with the company today. Much more painful to the stock was the continued lobbying against the company's freshly approved painkiller Zohydro. Despite an 11-2 advisory committee vote against approving the drug due to concerns that it had a high potential for abuse, the FDA still decided to approve the extremely effective drug.

In this video, Motley Fool health-care analyst David Williamson discusses the vocal opponents of the drug, and highlights the company's biggest threat: that the FDA would reconsider, and reverse its decision.

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The article Why Zogenix, Inc. Was a House of Pain for Investors originally appeared on Fool.com.

David Williamson owns shares of Pfizer. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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