Flexion Therapeutics Just Hit A Major Milestone


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Flexion Therapeutics Inc (NASDAQ:FLXN) announced last week it has received regulatory approval for its Zilretta therapy represents a "monumental milestone" for the company, BMO Capital Markets analyst Gary Nachman commented in a research report. The analyst maintains an Outperform rating on Flexion's stock with a price target boosted from $35 to $37 even though the approval was heavily expected.Among the multiple highlights for Flexion was diabetic data from a small study that wasn't expected, Nachman commented. The data showed a modest glucose level change for just the Zilretta arm and didn't include the IR triamcinolone arm that showed a significantly larger change. This surprise "opens the door to talk about the full diabetic data when Flexion promotes Zilretta (15-20% of OA knee patients have diabetes)."

"Importantly, we see a solid outcome with the label, and particularly some upside with mention of positive diabetic data that can be used as a key marketing hook," the analyst added.

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Finally, another welcome surprise comes from refrigeration as the label stated that its therapy can be stored at room temperature for up to six weeks if a fridge is not available, the analyst added. Refrigeration has been highlighted as a "potential sticking point" but is now "less of a concern."

At time of publication, shares of Flexion were down 6.16 percent at $28.09.

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Posted In: Analyst ColorBiotechLong IdeasNewsPrice TargetReiterationAnalyst RatingsMoversTrading IdeasGeneralBMO Capital MarketsDiabetesGary NachmanZilretta