Zogenix (NASDAQ:ZGNX) has officially priced its announced stock offering at $2.00/unit, each unit consisting of one share of common stock and one warrant to purchase 0.45 of a share of common stock, exercisable in one year at a price of $2.50. The offering will contain 32,500,000 units, and factoring in warrants and over-allotment, will nearly double the company’s current shares outstanding. Yesterday the company announced disappointing Q2 results, estimating revenue of around $8 million, down from analyst expectations of $9 million. The company’s lead pipeline candidate Zohydro is an extended release hydrocodone for treatment of moderate to severe chronic pain. ZGNX submitted a NDA for Zohydro in May. Although shares closed at $2.12 yesterday, they continued down after the bell and hover below $2.00 this morning. Expect to see a weak performance through the rest of the week as investors grapple with poor performance and a potentially overpriced stock offering.