Zogenix, Inc. Prices Public Offering of Common Stock and Warrants to Purchase Common Stock

Zogenix, Inc. announced that it has priced an underwritten public offering of 32,500,000 units. Each unit consists of one share of common stock and a warrant to purchase 0.45 of a share of common stock, at a price to the public of $2.00 per unit. Net proceeds, after underwriting discounts and commissions and estimated offering costs, will be approximately $60.7 million. Zogenix intends to use the net proceeds from the offering to repay all amounts outstanding under its amended and restated loan and security agreement with Oxford Finance LLC and Silicon Valley Bank, to fund the pre-approval and pre-commercialization activities of Zohydro ER, for the ongoing commercialization of Sumavel DosePro and for working capital and other general corporate purposes. Zogenix has granted the underwriters a 30-day option to purchase up to 4,875,000 additional units to cover over-allotments, if any. The offering is expected to close on or about July 27, 2012, subject to satisfaction of customary closing conditions. Each warrant will have an exercise price of $2.50 per share, will be exercisable one year after the date of issuance and will expire five years from the date of issuance. Stifel Nicolaus Weisel and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. Leerink Swann LLC is acting as lead co-manager for the offering. Oppenheimer & Co. Inc. and William Blair & Company, L.L.C. are acting as co-managers for the offering.