Pharmaceutical company Zogenix Inc is planning to raise USD56 million to fund its new drug development projects. The company will be selling 26.67 million shares of its common stock at USD2.25 apiece, according to a report published by The Middle Market.

Zogenix is a specialty pharmaceutical company based in San Diego. It focuses on the development and commercialization of drugs for the central nervous system and pain conditions. Ernst & Young LLP, the drug firm's accountant, cited trouble in continuing the pharmaceutical business because of losses and lack of capital. Zogenix faced threats of liquidation, the report said.

As part of a restructuring move in May, Zogenix laid off 55 employees. The firm reported an accumulated deficit of USD374.6 million as of end of September 2013, The Middle Market said.

The drug company signed an underwriting agreement with Leerink Swann LLC and Stifel Nicolaus & Co for the sale of its common stock. Zogenix expects the sale to be closed by November 12, the report stated.