We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Flexion (FLXN) Stock Soars 35% on $1 Billion Sanofi Buyout
Read MoreHide Full Article
Shares of Flexion Therapeutics soared on Thursday, up 36% to $26.80 per share following reports that French drug giant Sanofi (SNY - Free Report) is in talks to purchase the biotech company for more than $1 billion in cash.
According to a report by Fierce Pharma, Flexion’s board has voted to accept Sanofi’s non-binding offer. The report, citing an unnamed source, said the offering price is in the “mid-30s” per share.
Both Flexion and Sanofi spokesmen didn’t comment or release a statement on the acquisition.
“We’re pursuing an independent strategy to commercialize our lead product Zilretta,” said Flexion spokesman Scott Young.
Zilretta, a pain relief injection for osteoarthritis, is now waiting for FDA approval for use in the knee. Millions of Americans receive a steroid injection in the knee for pain relief each year. Analysts have suggested the potential peak sales for the new drug to be in the range of $500 million to $600 million.
For Sanofi, the acquisition will take away the future competition in the osteoarthritis pain relief market, as the company also has its injectable, Synvisc, which brought in €408 million in 2016.
Flexion released its fourth quarter and fiscal 2016 earnings this month. The company reported a net loss of $71.9 million for 2016, compared to net loss of $46.3 million for 2015. Research and development expenses went up from $32.7 million in 2015 to 41.3 million in 2016. The primary reason for the increase in costs is related to the development of Zilretta. The company expects the “expenses to increase over the next several years due to potential line extensions trials to Zilretta, expenses in capital additions ceramic scale up activities in manufacturing.”
The Massachusetts-based company is confident about the company’s future as it waits for FDA’s decision.
“We achieved many key milestones, most notably, the successful filing of the NDA for Zilretta. As a result, we have moved significantly closer to our goal of commercializing medicines that can potentially have a meaningful impact on patients, and we eagerly await the FDA’s decision on Zilretta,” said Michael Clayman, M.D., President and CEO of Flexion.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Flexion (FLXN) Stock Soars 35% on $1 Billion Sanofi Buyout
Shares of Flexion Therapeutics soared on Thursday, up 36% to $26.80 per share following reports that French drug giant Sanofi (SNY - Free Report) is in talks to purchase the biotech company for more than $1 billion in cash.
According to a report by Fierce Pharma, Flexion’s board has voted to accept Sanofi’s non-binding offer. The report, citing an unnamed source, said the offering price is in the “mid-30s” per share.
Both Flexion and Sanofi spokesmen didn’t comment or release a statement on the acquisition.
“We’re pursuing an independent strategy to commercialize our lead product Zilretta,” said Flexion spokesman Scott Young.
Zilretta, a pain relief injection for osteoarthritis, is now waiting for FDA approval for use in the knee. Millions of Americans receive a steroid injection in the knee for pain relief each year. Analysts have suggested the potential peak sales for the new drug to be in the range of $500 million to $600 million.
For Sanofi, the acquisition will take away the future competition in the osteoarthritis pain relief market, as the company also has its injectable, Synvisc, which brought in €408 million in 2016.
Flexion released its fourth quarter and fiscal 2016 earnings this month. The company reported a net loss of $71.9 million for 2016, compared to net loss of $46.3 million for 2015. Research and development expenses went up from $32.7 million in 2015 to 41.3 million in 2016. The primary reason for the increase in costs is related to the development of Zilretta. The company expects the “expenses to increase over the next several years due to potential line extensions trials to Zilretta, expenses in capital additions ceramic scale up activities in manufacturing.”
The Massachusetts-based company is confident about the company’s future as it waits for FDA’s decision.
“We achieved many key milestones, most notably, the successful filing of the NDA for Zilretta. As a result, we have moved significantly closer to our goal of commercializing medicines that can potentially have a meaningful impact on patients, and we eagerly await the FDA’s decision on Zilretta,” said Michael Clayman, M.D., President and CEO of Flexion.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere
1 billion iPhones in 10 years but a new breakthrough is expected to generate more
than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may
kick yourself in 2020. Click here for the 6 trades >>