FLXN

Flexion Therapeutics Inc

Healthcare


Presented:12/05/2017
Price:$25.44
Cap:$0.81B
Current Price:$9.12
Cap:$0.46B

Presented

Date12/05/2017
Price$25.44
Market Cap$0.81B
Ent Value$0.60B
P/E RatioN/A
Book Value$5.43
Div Yield0%
Shares O/S31.93M
Ave Daily Vol1,636,622
Short Int27.22%

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: Flexion Therapeutics Inc (FLXN)

Highlights

Following the FDA’s approval of Flexion’s Zilretta (triamcinolone acetonide extended-release injectable suspension) for osteoarthritis (OA) of the knee, the presenter is bullish on FLXN stock. He is long at ~$25, and believes there is the potential for patient shareholders to realize gains in excess of 100% over 24-36 months. Despite a large addressable market and the potential for Zilretta to help reduce the use of opioids, Street expectations for 2018 sales are low ($28mm). If Flexion’s extended release technology can be effectively used in other joints (e.g., the shoulder), then peak sales estimates are likely to exceed $1bn. Using a 3x multiple on his peak sales forecast of $1.3bn gets him to a longer-term fair value of the company right around $3.9bn (versus a $934mm market cap and $760mm EV today).

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Idea Discussion

Commentor 1 - 2 weeks ago

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