FLXN

Flexion Therapeutics Inc

Healthcare


Presented:07/18/2017
Price:$23.36
Cap:$0.74B
Current Price:$9.12
Cap:$0.46B

Presented

Date07/18/2017
Price$23.36
Market Cap$0.74B
Ent Value$0.70B
P/E RatioN/A
Book Value$5.23
Div Yield0%
Shares O/S31.70M
Ave Daily Vol753,979
Short Int20.88%

Current

Price$9.12
Market Cap$0.46B
Flexion Therapeutics, Inc. is a pharmaceutical company, which focuses on the development and commercialization of novel, local therapies. The firm specializes in treatment of patients with musculoskeletal conditions including osteoarthritis. It offers products under the Zilretta brand. The company was founded by Michael D. Clayman and Neil Bodick on November 5, 2007 and is headquartered in Burlington, MA.

Publicly traded companies mentioned herein: Eli Lilly & co (LLY), Flexion Therapeutics Inc (FLXN), Sanofi SA (SNY)

Highlights

The presenter is long shares of Flexion Therapeutics (FLXN) at $23 and sees meaningful upside potential for shareholders if/ when its novel injectable drug candidate, Zilretta [triamcinolone acetonide (TCA)], is approved by the FDA for the treatment of osteoarthritis (OA) of the knee. Zilretta is a non-opioid, sustained-release (aka longer-acting) corticosteroid for intra-articular injection; it’s patent extends through 2031. The OA market in the U.S. is huge (~$185bn in annual costs associated with OA) and Zilretta’s value proposition is clear compared to the current standard treatment guidelines: durable, non-narcotic pain relief is good for patients and helps keep overall costs down. The PDUFA date is October 6, 2017, and if Zilretta is approved and his estimates prove to be accurate, FLXN could see peak revenue of $839mm in 2023. In this scenario, the fair value of the stock on a DCF basis is ~$38 (+65%).

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Idea Discussion

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