When a company such as ZGNX conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the ZGNX split history from start to finish, an original position size of 1000 shares would have turned into 125 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into ZGNX shares, starting with a $10,000 purchase of ZGNX, presented on a split-history-adjusted basis factoring in the complete ZGNX split history.

About ZGNX

Zogenix is a global pharmaceutical company engaged in developing and commercializing therapies to improve the lives of patients and their families living with rare diseases. Co. is focused on developing and commercializing Fintepla, a low-dose fenfluramine, for pediatric epilepsy disorders and MT1621 for mitochondrial depletion disease, thymidine kinase 2 deficiency. In the United Kingdom, Fintepla is under late-stage development in Japan for the treatment of seizures associated with Dravet syndrome, a pediatric epilepsy disorder. Fintepla is also under late-stage development for the treatment of seizures associated with Lennox-Gastaut syndrome, another form of childhood-onset epilepsy. According to our ZGNX split history records, ZGNX has had 1 split.

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