After Astellas fallout, Zogenix strikes deal with Battelle to market DosePro

Zogenix ($ZGNX) had a deal with Astellas Pharma to co-promote DosePro, the company's needle-free drug delivery tech, but the two firms agreed to terminate the arrangement early, effective March 31. However, Zogenix has wasted little time finding another partner, inking a one-year deal with Battelle to market the platform.

DosePro is a no-needles subcutaneous delivery system that Zogenix is hoping to license to other developers and pharma customers. Right now, it's used only in Sumavel, Zogenix's on-the-market migraine treatment, and Relday, an in-development schizophrenia drug. By joining forces with Battelle, the San Diego-based Zogenix is making a bid to proliferate the system and expand its revenues.

All of this could be positive news for Zogenix's investors: The company's stock dropped 20% following the news of its early termination of the Astellas partnership, Reuters reported. Astellas accounted for 30% of Sumavel sales in 2011, Reuters notes, and investors were skeptical that Zogenix could continue marketing the product alone.

But alongside Battelle, the world's largest independent R&D organization, Zogenix brass is confident in DosePro's future. "Battelle has a strong reputation for product development that has earned them a 'who's who' client list in the pharmaceutical industry," Zogenix Vice President and General Manager John Turanin said in a statement. "Collaborating on DosePro provides additional support of our technology and the backing of a significant technical business partner." (Image courtesy of Zogenix)

- here's the Zogenix release
- get background from Reuters

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