Zogenix, Inc.’s (ZGNX) shares soared 20.51% after the company announced that the U.S. District Court in Massachusetts has entered an order preventing a ban on Zohydro ER (opioid agonist, extended-release, oral formulation of hydrocodone bitartrate) on Constitutional grounds.

The court agreed with Zogenix’s claim that the ban was in direct conflict with the U.S. Food and Drug Administration’s (:FDA) decision to approve Zohydro ER for management of severe pain, requiring daily, around-the-clock, long-term opioid treatment in patients who have not received adequate relief using alternative treatment options. Zogenix argued that the FDA had approved Zohydro ER only after a thorough review of its safety and efficacy data.

The U.S. District Court’s order will be effective from Apr 22, 2014. We believe that the U.S. District Court’s order is a major positive for the company. The ban would have limited the access of Zohydro ER to patients in Massachusetts, which in turn would have hampered the product’s sales.

We remind investors that Zogenix had launched Zohydro ER in the U.S. on Mar 3, 2014. However, later in March, Governor Deval Patrick banned Zohydro ER due to concerns about the drug’s abuse potential. Following this, Zogenix filed a lawsuit in the U.S. District Court in Massachusetts requesting a temporary restraining order against the execution of Governor Patrick’s order.

Zogenix currently holds a Zacks Rank #3 (Hold). Some better-ranked healthcare stocks worth considering include Salix Pharmaceuticals Ltd. (SLXP), Sucampo Pharmaceuticals, Inc. (SCMP) and ImmunoGen, Inc. (IMGN). All three sport a Zacks Rank #1 (Strong Buy).

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