ARTICLE | Finance

More debt, less equity

VCs figure some debt could take Zogenix to profitability with migraine drug

August 2, 2010 7:00 AM UTC

Zogenix Inc. needs capital to support marketing of its Sumavel DosePro sumatriptan to treat migraine, which was launched in January. Investors last month chose to limit dilution by putting in $35 million in debt and only $15 million in equity.

"We'd like to get the company to the point where it's profitable," board member Kurt Wheeler of Clarus Ventures told Ebb & Flow. "We'll probably need to put more equity into it to do that, but we're looking at 12-18 months for an IPO."...