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.”

About Zogenix
Zogenix, Inc., with offices in Emeryville and San Diego, Calif., is a privately held pharmaceutical company focused on the development and commercialization of medicines to treat neuroscience disorders and pain. The company is commercially focused on SUMAVEL™ DosePro™ (sumatriptan injection) needle-free delivery system, which launched in January 2010, for the acute treatment of migraine and cluster headache. The company’s pipeline includes ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain, which entered Phase 3 clinical trials in March 2010. Zogenix also plans to license the patented DosePro needle-free drug delivery system to other companies. For additional information, please visit www.zogenix.com.

About Oxford Finance Corporation
A subsidiary of Sumitomo Corporation, Oxford is a specialty finance firm providing senior secured loans to public and private life science and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $1.5 billion in loans, with lines of credit ranging from $500 thousand to $40 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California and Massachusetts. For more information visit www.oxfordfinance.com.

About Silicon Valley Bank
Silicon Valley Bank (SVB) is the premier commercial bank for companies in the technology, life science, venture capital, private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 US offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB) and a member of the FDIC and the Federal Reserve System. More information on the company can be found at www.svb.com.

SUMAVEL and DosePro are trademarks of Zogenix, Inc.

# # #

INVESTORS:
Ann Rhoads | Zogenix, Inc.
858.436.8583 | ir@zogenix.com

MEDIA:
Catherine O‘Connor | Zogenix, Inc.
858.436.3374 | coconnor@zogenix.com

Shelly Davis | Oxford Finance Corporation
888.471.0174| sdavis@oxfordfinance.com

Position duties:

The primary role of the Manufacturing/Sustaining Engineer is to ensure that the DosePro commercial manufacturing processes and equipment located in Europe consistently deliver DosePro products to the market according to the approved production plan, quality requirements, and cost targets. This will be accomplished by providing technical and operations support and guidance to improve DosePro commercial manufacturing processes and equipment located at all DosePro Contract Manufacturing Partners (CMPs) and component and raw material providers upstream of those CMPs in a manner consistent with lean operations and minimum total operating costs.

Activities include support for and improvements to traditional and advanced pharmaceutical manufacturing processes and technologies such as compounding, mixing, aseptic assembly and filling, mechanical component fabrication, high-level automation, controlled release technologies and packaging. Production activities include clinical as well as commercial scale processes. All work will be done in compliance with Zogenix’ and the applicable CMO’s quality systems, including change control, document control and training, always in coordination with both Zogenix and the contract manufacturer’s Quality and Operations functions.

Major Accountabilities

*Lead investigations of, and resolutions to specific manufacturing or production quality and throughput issues with contract manufacturers, equipment, component and/or raw material suppliers
*Under leadership and mentoring of senior Zogenix technical staff, become the Zogenix technical expert with regard to DosePro pharmaceutical manufacturing equipment, processes and components. Train operational, maintenance and other technical personnel to assure optimal utilization of the Zogenix assets
*Through careful and scientific analysis, develop optimization plans for the manufacturing equipment, processes and operating procedures
*Drive improvements in efficiency, yield, cost optimization and throughput to completion, working in close collaboration with the relevant CMP and component supplier representatives and internal Zogenix functions.
*Work with the CMO to ensure a robust and reproducible DosePro manufacturing process, including the development and supervision of effective continuous improvement processes.
*Develop systems to report DosePro manufacturing operations metrics including throughput, yield, scrap rates, machine efficiency, labor efficiency, and product quality
*Develop and coordinate detailed project plans and schedules.
*Co-ordinate all non-routine production activities including manufacture of clinical supplies and new product development batches
*Draft, review and approve master manufacturing templates and documentation including Standard Operating Procedures, Master Batch Manufacturing Records, Training Records and Specifications.
*Assure timely execution of projects within acceptable budget limits. This will include the responsibility for financial control and reporting of expenditure within assigned projects.
*Recommend enhancements to systems and processes within the DosePro pharmaceutical manufacturing operation, associated with proposed product changes

Required Skills and Experience:
Education:
Bachelors Degree in Mechanical, Chemical or Electrical Engineering

*8-10 years experience as an Engineer responsible for design and support of equipment in a production environment at least 5 of which must have been in an aseptic pharmaceutical environment utilizing highly automated manufacturing processes
*Significant experience working with third party vendors, contractors and contract manufacturers in a role requiring relationship building and nurturing. Must have experience influencing partner organizations to achieve positive outcomes without reporting or significant economic leverage
*The candidate must have experience with validation of automated equipment, and familiarity with cGMP and Regulatory aspects of aseptic filling processes.
*Training/Certification in lean manufacturing and in leading and closing out investigations, deviations and CAPA activities
*Project management skills and specific experience managing outside contractors/suppliers is also required.
*Strong electrical & mechanical troubleshooting skills and knowledge.

Ideal Personal Profile:

*A significant bias for action. Willing and able to make sound technical and business decisions and act on them with urgency
*Excellent communication and relationship building skills. Willing and able to develop and nurture productive working relationships with colleagues, partners, suppliers, contractors, leaders and subordinates.
*Flexible and adaptable in changing environments. Showing resourcefulness and initiative to set personal goals and priorities to achieve the overall project and business objectives.
*Excellent interpersonal skills. Able to demonstrably influence positive outcomes without direct reporting authority
*An ability to anticipate technical and process issues, and efficiently resolve them before they impact on key business or project milestones
*Detail-oriented, thorough and tenacious. Excellent judgment and problem solving skills, maintaining high quality and efficiency standards. Focused on seeing solutions through to full resolution.
*Excellent knowledge of cGMP, GAMP, DOE, pharmaceutical industry standards and both EU and US regulatory requirements

Based in Europe, preferable near London

Ability to travel up to 25-50% of time

Position duties:
The primary role of the Manufacturing/Sustaining Engineer is to ensure that the DosePro commercial manufacturing processes and equipment located in Europe consistently deliver DosePro products to the market according to the approved production plan, quality requirements, and cost targets. This will be accomplished by providing technical and operations support and guidance to improve DosePro commercial manufacturing processes and equipment located at all DosePro Contract Manufacturing Partners (CMPs) and component and raw material providers upstream of those CMPs in a manner consistent with lean operations and minimum total operating costs.

Activities include support for and improvements to traditional and advanced medical device manufacturing processes and technologies such as mechanical component fabrication, device assembly, high-level automation, controlled release technologies and packaging. Production activities include clinical as well as commercial scale processes. All work will be done in compliance with Zogenix’ and the applicable CMP’s quality systems, including change control, document control and training, always in coordination with both Zogenix and the contract manufacturer’s Quality and Operations functions.

Major Accountabilities

Lead investigations of, and resolutions to specific manufacturing or production quality and throughput issues with contract manufacturers, equipment, component and/or raw material suppliers

Under leadership and mentoring of senior Zogenix technical staff, become the Zogenix technical expert with regard to DosePro pharmaceutical manufacturing equipment, processes and components. Train operational, maintenance and other technical personnel to assure optimal utilization of the Zogenix assets

Through careful and scientific analysis, develop optimization plans for the manufacturing equipment, processes and operating procedures

Drive improvements in efficiency, yield, cost optimization and throughput to completion, working in close collaboration with the relevant CMP and component supplier representatives and internal Zogenix functions.

Work with the CMO to ensure a robust and reproducible DosePro manufacturing process, including the development and supervision of effective continuous improvement processes.

Develop systems to report DosePro manufacturing operations metrics including throughput, yield, scrap rates, machine efficiency, labor efficiency, and product quality

Develop and coordinate detailed project plans and schedules.

Co-ordinate all non-routine production activities including manufacture of clinical supplies and new product development batches

Draft, review and approve master manufacturing templates and documentation including Standard Operating Procedures, Master Batch Manufacturing Records, Training Records and Specifications.

Assure timely execution of projects within acceptable budget limits. This will include the responsibility for financial control and reporting of expenditure within assigned projects.

Recommend enhancements to systems and processes within the DosePro manufacturing operation, associated with proposed product changes

Required Skills and Experience:

Education:
Bachelors Degree in Mechanical, Chemical or Electrical Engineering

8-10 years experience as an Engineer responsible for design and support of equipment in a production environment at least 5 of which must have been in a medical device environment utilizing highly automated manufacturing processes

Significant experience working with third party vendors, contractors and contract manufacturers in a role requiring relationship building and nurturing. Must have experience influencing partner organizations to achieve positive outcomes without reporting or significant economic leverage

The candidate must have experience with validation of automated equipment, and familiarity with cGMP and Regulatory aspects of aseptic filling processes.

Training/Certification in lean manufacturing and in leading and closing out investigations, deviations and CAPA activities

Project management skills and specific experience managing outside contractors/suppliers is also required.

Strong electrical & mechanical troubleshooting skills and knowledge.

Ideal Personal Profile:

A significant bias for action. Willing and able to make sound technical and business decisions and act on them with urgency.

Excellent communication and relationship building skills. Willing and able to develop and nurture productive working relationships with colleagues, partners, suppliers, contractors, leaders and subordinates.

Flexible and adaptable in changing environments. Showing resourcefulness and initiative to set personal goals and priorities to achieve the overall project and business objectives.

Excellent interpersonal skills. Able to demonstrably influence positive outcomes without direct reporting authority

An ability to anticipate technical and process issues, and efficiently resolve them before they impact on key business or project milestones

Detail-oriented, thorough and tenacious. Excellent judgment and problem solving skills, maintaining high quality and efficiency standards. Focused on seeing solutions through to full resolution.

Excellent knowledge of cGMP, GAMP, DOE, medical device industry standards and both EU and US regulatory requirements

Based in Europe, preferable near Dublin or London

Ability to travel up to 25-50% of time

Position duties:
The primary role of this position is to ensure that components and subassemblies used in the production of DosePro products are delivered to commercial manufacturing operations in Europe in order to meet the approved production schedule. This is done by gathering information from disparate systems, organizations and data sources and supporting the European Operations group by tracking/analyzing Contract Manufacturing Partners’ (CMP’s) and component suppliers’ production activities and supplier orders/deliveries. The position will track and trend component consumption and yields with an eye toward increasing efficiency in usage, delivery patterns, and delivery quantities. In addition to the above tasks, the Specialist may assist in the data definition and implementation of Enterprise Resource Planning software.

Major Accountabilities

Using the approved production schedule, ensure that upstream delivery plans for components and subassemblies are in place and coordinated to support delivery of finished goods according to plan.

In the face of threats to approved schedules caused by interruptions to component or subassembly delivery, work with the Director of European Operations, Manufacturing Engineering, Quality, suppliers, CMP’s, US Materials Management, and logistics providers to create, implement, and expedite solutions which minimize the impact of disruptions to the finished goods delivery schedule.

Prepare required schedules, transactions, analyses, presentations, and reports in support of manufacturing systems and processes

Work closely with operational personnel in CMP and supplier organizations to extract pertinent order, production, delivery and release information on components, assemblies, and finished goods

Measure and evaluate supply, production, delivery and inventory metrics and communicate to associated stakeholders. Support improvement and efficiency of metrics reporting systems and processes

Maintain and report production plans, shop floor schedules, inventory reports, component delivery schedules and databases for CMPs and component suppliers

Support Zogenix Cost Accounting and CMP’s in the performance of physical inventories and/or cycle counts.

Document work practices and policies

Recommend changes and support enhancements to systems and processes within European operations

Minimum requirements:

Education:
Bachelor’s degree or equivalent experience. Production and Inventory Control training/certification.

Experience:
5-10 years in direct material procurement, production planning (utilizing commercial ERP or MRP software systems) and financial analysis as it relates to the manufacturing operations environment.

1-2 yrs experience in expediting shipments between European Union member states
Department/Company specific requirements: (includes reporting relationship, specialized experience & skills, work hours, work location, core competencies)

A significant bias for action. Willing and able to take direction and assignments and act on them with urgency

Excellent communication and relationship building skills. Willing and able to develop and nurture productive working relationships with colleagues, partners, suppliers, contractors, leaders and subordinates.

Flexible and adaptable in changing environments. Showing resourcefulness and initiative to set personal goals and priorities to achieve the overall business objectives.

Excellent interpersonal skills. Able to demonstrably influence positive outcomes without direct reporting authority

Excellent judgment and problem solving ability in an informal organizational structure.

Strong ability to evaluate seemingly disconnected events, understand their impact on timing of internal and external operations and recommend optimal actions to avoid delays or improve efficiencies

Experience using Microsoft Great Plains ERP software is a plus

Based in Europe, preferable near London

Able to travel up to 25-50% of time.

Knowledge of and experience with pharmaceutical manufacturing principles, practices and regulatory requirements.

This individual will provide financial leadership for the compilation of various financial models to support several business needs. Lead the coordination and compilation of the annual operating budget. Lead the coordination and compilation of quarterly updates to the company’s operating forecast and long-range financial plans. Prepare, on an ad-hoc basis, various scenario-based financial analysis and support cash management forecasting.

RESPONSIBILITIES

• Prepares financial and business related analysis and research in such areas as financial and expense performance, rate of return, depreciation, working capital, and investments.
• Prepares consolidated forecasts and budgets and analyzes trends in revenue, expense, capital expenditures and other related areas.
• Prepares models to support cash management needs and sensitivity analysis.
• Prepares various scenario-based financial analysis.
• Utilizing Great Plains, Cognos and excel; compiles and prepares reports, graphs and charts of data developed.
• Assists with special financial and business related studies and cooperates with other departments in preparing analyses.
• Leads the annual budget process and long range financial planning process.
• Leads quarterly process to update corporate operating forecast.
• Maintains and coordinates group completion of financial review templates and meetings.
• Performs other duties as required.

REQUIREMENTS - QUALIFICATIONS

• Bachelors degree and 7+ years of financial analysis work experience.
• MBA and/or CPA preferred.
• Demonstrated strong leadership attributes and the ability to work effectively with senior staff.
• Excellent written and oral communication skills with ability to generate concise reports and verbal updates.
• Strong interpersonal skills are required as is the ability to effectively influence others.
• Demonstrated strong analytical skills; ability to understand and perform modeling.
• Familiarity or experience with pharmaceutical research and development process a plus.
• Familiarity or experience with cost accounting a plus.
• Flexibility to work in a fast paced and dynamic work environment.

COMPUTER SKILLS

• Great Plains experience a plus.
• Cognos experience a plus.
• Advanced Excel skills required.

TRAVEL REQUIREMENTS

5% domestic US travel (i.e. 1 day/quarterly).

Zogenix is currently seeking an experienced highly motivated Project Engineer to play a key role in the management of drug product technology transfers (clinical and commercial), project coordination of process development projects, and key capital procurement projects throughout the supply chain. The successful candidate will apply strong fundamental engineering and manufacturing process knowledge with excellent project management skills to meet critical business objectives.

This position will report to the Director, Process Engineering & Technical Services and is located in Emeryville, California.

Responsibilities:
• Provide leadership of clinical manufacturing and technology transfer projects, assisting in the definition of general procedures and deliverables for DosePro technology transfers.

• Provide project management of assigned PETS projects including preparation of project plans to ensure successful delivery of project objectives on time and within budget; project cost accounting; identification and mitigation of project risks; project change documentation.

• Provide Engineering support for Process Engineering by generating engineering, qualification, and validation protocols, process deviation investigations and generating documentation for change control.

• Create and update process definition documentation, including (as required) process descriptions, technical specifications, process models / mass balances, and bills of materials.

• Assist in management of Zogenix Process Engineering & Technical Sciences (PETS) functions.

Requirements:
• Minimum B.S./B.A. in engineering discipline, or equivalent. Mechanical or Chemical Engineering preferred.

• Minimum 5 years experience in pharmaceutical industry

• Ability to travel (15 – 25%)

• Strong knowledge of aseptic pharmaceutical operations, assembly operations, pharmaceutical equipment / facility design and qualification and pharmaceutical process validation, including cleaning validation.

• Strong knowledge of problem solving & root cause analysis methodologies, with proven ability to apply within pharmaceutical operations. Six Sigma experience (Green or Black Belt) preferred.

• Strong knowledge of application of statistical techniques for data analysis, process control, and validation.

• Good understanding of Good Manufacturing Practice, pharmaceutical production & process control and Design of Experiments, with proven ability to apply within pharmaceutical operations.

• Good understanding of risk management methodologies, with proven ability to apply within pharmaceutical operations.

• Basic understanding of analytical method validation and managerial accounting.

• Strong understanding of project management methodologies, with proven ability to apply within pharmaceutical operations.

• Excellent written communication skills with solid presentation and facilitation skills.

• Proven ability to effectively manage interactions with partners, including CMOs, Zogenix Quality, and Zogenix Development.

• Actively builds relationships within and across functions; Respectful of colleagues both within and outside Zogenix.

• Forward looking and solutions-oriented; Passionate about learning and self- improvement and driven towards superior effort and performance.

• Demonstration as a highly motivated team player with commitment to quality, attention to detail, strong problem solving skills, and an exemplary work ethic.

If you desire to make a difference and are looking for a unique and challenging career opportunity please send your resume to: hr@zogenix.com

Be a part of an emerging industry leader with Zogenix!

“We are pleased to be initiating this pivotal Phase 3 trial of ZX002 as the first single-entity, controlled-release hydrocodone formulation,” said Cynthia Robinson, Ph.D., chief development officer of Zogenix. “We believe this hydrocodone therapy could offer significant benefits to both the patient and the practicing physician by allowing for less frequent dosing with a customized controlled-release profile and the ability to titrate to higher hydrocodone doses than currently recommended for hydrocodone products burdened by combination formulations. Further, we believe ZX002 may offer patients an option for the treatment of their chronic pain that potentially avoids some of the serious side effects that can accompany chronic use of combination opioids that contain acetaminophen, or other non-steroidal anti-inflammatory drugs (NSAIDs).”

ZX002 Phase 3 Clinical Trial Design
This Phase 3 efficacy trial for ZX002 is designed to enroll approximately 600 patients with chronic low back pain. The trial is a US-based multi-center, randomized, double-blind, placebo-controlled study to evaluate the efficacy, safety and tolerability of ZX002. For further information regarding this study contact: www.clinicaltrials.gov and reference NCT01081912.

About Zogenix
Zogenix, Inc., with offices in Emeryville and San Diego, Calif., is a privately held pharmaceutical company focused on the development and commercialization of medicines to treat neuroscience disorders and pain. The company is commercially focused on SUMAVEL™ DosePro™ (sumatriptan injection) needle-free delivery system, which launched in January 2010. The company’s pipeline includes ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain, which entered Phase 3 clinical trials in March 2010. Zogenix also plans to license the patented DosePro needle-free drug delivery system to other companies. For additional information, please visit www.zogenix.com.

About Elan Drug Technologies and SODAS® Technology
Elan Drug Technologies (EDT), a leader in drug delivery, is a business unit of Elan Corporation, plc (NYSE:ELN). EDT developed the controlled release formulation of hydrocodone, using one of its Oral Controlled Release Technologies, the SODAS® (Spheroidal Oral Drug Absorption System) technology, which has been accepted by regulatory authorities worldwide including approvals for SODAS-based products in the US for Avinza®, Ritalin LA® and Focalin® XR. A number of other compounds are in late stage development utilizing Elan Drug Technologies SODAS® technology. Elan Drug Technologies offers clients drug delivery expertise with a suite of commercially launched, proprietary, technology-driven solutions. More information is available at www.elandrugtechnologies.com.

SODAS is a registered trademark of Elan Pharma International Ltd
AVINZA is a registered trademark of King Pharmaceuticals Research and Development, Inc.
FOCALIN and RITALIN LA are registered trademarks of Novartis AG

# # #

INVESTORS:
Ann Rhoads | Zogenix, Inc.
858.436.8583 | ir@zogenix.com

MEDIA:
Catherine O‘Connor | Zogenix, Inc.
858.436.3374 | coconnor@zogenix.com

Ms. Rhoads was previously the chief financial officer and senior vice president for Premier, Inc., a $600 million dollar healthcare service company where she had responsibility for all areas of financial management, strategic planning, business development, information technology, ethics and compliance. Ms. Rhoads joined Premier in August 1998 as vice president for strategic initiatives responsible for overseeing strategic investments, including a $30 million venture capital fund, as well as assisting Premier operating divisions with long range strategic planning. She was promoted to chief financial officer in 2000. Prior to joining Premier, Ms. Rhoads held various positions at Sprout Group, a venture capital affiliate of Donaldson, Lufkin & Jenrette (now part of Credit Suisse First Boston), Bain & Company and Merrill Lynch Capital Partners (now known as Stonington Partners). Ms. Rhoads received a Masters in Business Administration from the Harvard Graduate School of Business Administration and a B.S. from the University of Arkansas.

“Dynamic times call for exceptional leadership talent and a strong team. We are extremely pleased to have attracted Ann to join the Zogenix executive team in this key position. The depth and breadth of her expertise in healthcare, finance and business strategy will be a significant asset to Zogenix as we continue to expand our development pipeline, execute our commercial strategies and plan our future growth,” said Roger Hawley, chief executive officer of Zogenix.

“This is a great opportunity to bring my experience in strategic planning as well as financial management to a young company with innovative products,” said Ann. “I am eager to work with the entire team at Zogenix as we expand the string of successes that have taken place since the approval of SUMAVEL DosePro last summer.”

About Zogenix
Zogenix, Inc., with offices in Emeryville and San Diego, Calif., is a privately held pharmaceutical company focused on the development and commercialization of medicines to treat neuroscience disorders and pain. The company’s initial focus is the commercialization of SUMAVEL DosePro, which launched in January 2010. The company’s pipeline also includes ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain, preparing to enter Phase 3 clinical trials. Zogenix also plans to license the patented DosePro needle-free drug delivery system to other companies. For additional information, please visit www.zogenix.com.

Zogenix™, SUMAVEL™ and DosePro™ are trademarks of Zogenix, Inc.

# # #

INVESTORS:
858.436.8583 | ir@zogenix.com

MEDIA:
Catherine O‘Connor | Zogenix, Inc.
858.436.3374 | coconnor@zogenix.com

SAN DIEGO, Calif. and DEERFIELD, Ill., January 13, 2010 Zogenix, Inc. (“Zogenix”), a privately held pharmaceutical company, and Astellas Pharma U.S., Inc. (“Astellas”) announced today the U.S. commercial launch of SUMAVEL™ DosePro™ (sumatriptan injection) needle-free delivery system. In July 2009, the U.S. Food and Drug Administration approved SUMAVEL DosePro for the acute treatment of migraine, with or without aura, and the acute treatment of cluster headaches. SUMAVEL DosePro delivers subcutaneous sumatriptan, a treatment that provides migraine relief starting within 10 minutes for some patients*, in a first-of-its-kind needle-free delivery system. SUMAVEL DosePro is expected to be available at most retail pharmacy outlets this month.

“Migraines can be disabling, with profound implications on quality of life,” said Roger K. Cady, M.D., vice president of the National Headache Foundation board of directors and director of the Headache Care Center in Springfield, Mo. “One of the most common complaints of my migraine patients is that they would like to achieve faster relief. The availability of SUMAVEL DosePro makes it possible for patients to benefit from the fast relief of a subcutaneous formulation in a simple to use, needle-free delivery system.”

SUMAVEL DosePro offers other practical benefits. Approximately 30 percent of patients report vomiting as a symptom of migraine attacks, and the vast majority of attacks are also accompanied by nausea¹. During these episodes, oral therapies may be an impractical treatment option. Further, while most forms of triptans can be effective when taken early in a migraine attack, patients who experience rapid onset of migraines, or those that occur upon waking may not always achieve the fast relief they would like from tablet and nasal forms. Quickly absorbed subcutaneous sumatriptan may offer an alternative for these patients, although until now, it was only available in a needle-based system. New SUMAVEL DosePro delivers sumatriptan subcutaneously (under the skin) without a needle, which can offer fast relief in a patient-friendly delivery system.

“We are extremely pleased to announce the introduction of SUMAVEL DosePro, which represents the first needle-free subcutaneous sumatriptan available to treat acute migraines,” said Stephen Farr, Ph.D., president, chief operating officer and director of Zogenix. “Given its unique attributes, SUMAVEL DosePro offers a new, fast-acting, nonoral option for patients who suffer from migraine. We believe SUMAVEL DosePro has the potential to not only replace needle-based injectable forms of sumatriptan, but also tablet and nasal triptan forms for many migraine episodes.”

Zogenix and Astellas have an exclusive co-promotion agreement to market SUMAVEL DosePro needle-free delivery system in the United States. Zogenix is focusing its sales activities primarily on the neurology market while Astellas is focusing principally on primary care physicians.

*In two well-controlled clinical trials (N=1104) with patients experiencing moderate or severe pain and one or more migraine symptoms, the efficacy of subcutaneous sumatriptan versus placebo was evaluated. In these clinical trials, 16 percent of patients achieved relief within 10 minutes versus 4 percent for placebo; 70 percent of patients achieved relief at one hour versus 22 percent for placebo (P<.001); and 82 percent of patients achieved relief at two hours versus 39 percent for placebo (P<.05) [SUMAVEL DosePro prescribing information].

About SUMAVEL DosePro
SUMAVEL DosePro (sumatriptan injection) is indicated for the acute treatment of migraine attacks, with or without aura, and the acute treatment of cluster headache episodes.

SUMAVEL DosePro should only be used where a clear diagnosis of migraine or cluster headache has been established. SUMAVEL DosePro is not intended for the prophylactic therapy of migraine or for use in the management of hemiplegic or basilar migraine and should not be administered intravenously. For a given attack, if a patient does not respond to the first dose of SUMAVEL DosePro, the diagnosis of migraine or cluster headache should be reconsidered before administration of a second dose. For more information about SUMAVEL DosePro, please visit www.SUMAVELDosePro.com.

IMPORTANT SAFETY INFORMATION SUMAVEL DosePro is contraindicated in patients with uncontrolled hypertension, in patients with history, symptoms or signs of ischemic heart disease, coronary artery vasospasm, cerebrovascular or peripheral vascular disease including ischemic bowel disease and in patients with other significant underlying cardiovascular diseases or known hypersensitivity to sumatriptan. SUMAVEL DosePro should not be given to patients in whom unrecognized coronary artery disease is predicted by the presence of risk factors without a prior cardiovascular evaluation. Serious cardiovascular events, including death, have been reported when taking sumatriptan, including patients with no findings of cardiovascular disease. Considering the extent of use of sumatriptan in patients with migraine, the incidence of these events is extremely low. Cerebrovascular events, some fatal, have been reported in patients treated with sumatriptan. In a number of cases, it appears possible that the cerebrovascular events were primary, sumatriptan having been administered in the incorrect belief the symptoms experienced were a consequence of migraine when they were not. It is important to advise patients not to administer SUMAVEL DosePro if a headache being experienced is atypical.

SUMAVEL DosePro should not be used within 24 hours of other ergotamine-containing or ergot-type medications or other 5-HT1 agonists and is not generally recommended for use with MAO-A inhibitors. The development of a potentially life-threatening serotonin syndrome may occur with triptans, including treatment with SUMAVEL DosePro, particularly during combined use with selective serotonin reuptake inhibitors (SSRIs) and serotonin-norepinephrine reuptake inhibitors (SNRIs). SUMAVEL DosePro should be used during pregnancy only if the potential benefit justifies the potential risk.

In controlled clinical trials with sumatriptan injection, the most common adverse reactions were injection site reactions, tingling, warm/hot sensation, burning sensation, feeling of heaviness, pressure sensation, feeling of tightness, numbness, feeling strange, tight feeling in head, flushing, tightness in chest, discomfort in nasal cavity/sinuses, jaw discomfort, dizziness/vertigo, drowsiness/sedation and headache.

For full prescribing information, go to http://www.zogenix.com/docs/SV0018.0709A_SDP_PI.pdf

About DosePro Technology
The DosePro technology is an easy-to-use, pre-filled drug delivery system designed to enable self-administration of single doses of liquid drug formulations, subcutaneously, without a needle. The DosePro technology has undergone more than 10 years of design, process engineering, clinical evaluation and development work. DosePro is protected by more than 80 patents, issued and applied for, worldwide. Approximately 9,000 injections have been delivered in clinical trials in healthy volunteers using the DosePro needle-free drug delivery system.

About Zogenix
Zogenix, Inc., with offices in Emeryville and San Diego, Calif., is a privately held pharmaceutical company focused on the development and commercialization of medicines to treat neuroscience disorders and pain. The company’s initial focus is the commercialization of SUMAVEL DosePro, which received U.S. Food and Drug Administration approval in July 2009. The company’s pipeline also includes ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain, preparing to enter Phase 3 clinical trials. Zogenix also plans to license the patented DosePro needle-free drug delivery system to other companies. For additional information, please visit www.zogenix.com.

About Astellas
Astellas Pharma U.S., Inc., located in Deerfield, Illinois, is a U.S. affiliate of Tokyobased Astellas Pharma Inc. Astellas is a pharmaceutical company dedicated to improving the health of people around the world through the provision of innovative and reliable pharmaceutical products. The organization is committed to becoming a global category leader in focused areas by combining outstanding R&D and marketing capabilities. In the U.S., Astellas markets products in the areas of anti-infectives, cardiovascular, dermatology, immunology, neuroscience, and urology. For more information about Astellas Pharma U.S., Inc., please visit www.us.astellas.com.

1 (Lipton RB, Stewart WF, Diamond S, Diamond ML, Reed M. Prevalence and burden of migraine in the United States: data from the American Migraine Study II. Headache. 2001)

Zogenix™, SUMAVEL™ and DosePro™ are trademarks of Zogenix, Inc.

# # #

INVESTORS:
David Nassif | Zogenix, Inc.
858.436.8583 | ir@zogenix.com

MEDIA:
Jackie Quintanilla | Edelman
323.202.1053 | jacqueline.quintanilla@edelman.com
Catherine O‘Connor | Zogenix, Inc.
858.436.3374 | coconnor@zogenix.com
Jenny Keeney | Astellas US LLC
847.317.5405 | jenny.keeney@us.astellas.com

SAN DIEGO, Calif., (December 7, 2009): Zogenix, Inc. (“Zogenix”), a privately held pharmaceutical company, announced today that it has closed a $35 million second tranche of a Series B preferred stock financing. The Series B round was increased from $51 million, previously announced in September, to $71 million. The additional $20 million investment was made by Chicago Growth Partners, which will now be represented on the Zogenix Board of Directors by Dr. Arda Minocherhomjee. All existing Zogenix investors including Clarus Ventures, Domain Associates, Scale Venture Partners, Thomas, McNerney & Partners, and Abingworth Management, as well as new investor, Oxford Finance Corporation, contributed to the total $71 million Series B.

The capital primarily will be used to fully support the launch of SUMAVEL™ DosePro™ (sumatriptan injection) needle-free delivery system, the company’s first product, that will launch in January 2010. Zogenix is also advancing its product pipeline and is actively engaged in efforts to out-license the unique, needle-free DosePro technology to other biopharmaceutical companies.

“Zogenix has developed an innovative product by incorporating a needle-free delivery system, which potentially could also be used for a variety of pharmaceuticals,” said Dr. Minorcherhomjee. “The company has a strong management team and board, and is well positioned to capture share in select market segments.”

“We are very pleased to welcome Chicago Growth Partners to our investor group and also very fortunate to have the continued support from all of our existing investors,” said Roger Hawley, CEO, Zogenix. “Our dedicated Zogenix team is on track with all aspects of our commercial plan, including building our sales force. Zogenix will be fully prepared for our first launch in January. These are exciting times, and I’m proud of our team’s accomplishments.”

About DosePro technology
The DosePro technology is an easy-to-use, pre-filled drug delivery system designed to enable self-administration of single doses of liquid drug formulations, subcutaneously, without a needle. The DosePro technology has undergone more than ten years of design, process engineering, clinical evaluation and development work. DosePro is protected by more than 80 patents, issued and applied for, worldwide. Approximately 9,000 injections have been delivered in clinical trials in healthy volunteers using the DosePro needle-free drug delivery system.

About Zogenix
Zogenix, Inc., with offices in Emeryville and San Diego, Calif., is a privately held pharmaceutical company focused on the development and commercialization of medicines to treat neuroscience disorders and pain. The company’s initial focus is the commercialization of SUMAVEL DosePro. Zogenix submitted a New Drug Application with the U.S. Food and Drug Administration for SUMAVEL DosePro in December 2007, and received FDA approval in July 2009. The company’s pipeline also includes ZX002, a novel oral controlled-release formulation of hydrocodone without acetaminophen for the treatment of chronic pain, preparing to enter Phase 3 clinical trials. Zogenix also plans to license the patented DosePro needle-free drug delivery system to other companies. For additional information, visit www.zogenix.com.

Zogenix™, Sumavel™ and DosePro™ are trademarks of Zogenix, Inc.

MEDIA CONTACTS
Zogenix, Inc.
Catherine O‘Connor
Sr. Director, Commercial Communications
858.436.3374
coconnor@zogenix.com

INVESTOR CONTACTS
Zogenix, Inc.
David Nassif
Chief Financial Officer
858.436.8583
ir@zogenix.com