Thursday Morning’s Market Insights: Abercrombie and Fitch Co. (ANF), OvaScience Inc (OVAS), Flexicon Therapeutics Inc (FLXN), AcelRx Pharmaceuticals Inc (ACRX)


Abercrombie & Fitch Co. (NYSE:ANF) is down close to 12% in pre-market trading after the firm released disappointing 1Q:16 earnings this morning. The company posted revenues of $685.5 million and a loss of $(0.59) per share, missing consensus expectations of $705.9 million in revenue and a loss of $(0.50) for the quarter. The earnings miss came as a result of a 4% q/q decline in sales, where analysts had predicted a 1.5% increase. The company has struggled recently with changing consumer tastes, general traffic declines, and rising competition from fast-fashion companies. The company joins a long list of falling retail stocks as consumers shift to more discounted stores.

Analyst Richard Jaffe commented: “ANF 1Q results were less than anticipated although disappointingly consistent with the weak trend evident among select apparel retailers in the quarter. Weather, fashion, a shift in consumption patterns and the cannibalism of e-commerce provide an explanation for at least a portion of the weakness. Weakness Continues into 2Q but Hope for 2H – 1Q’s weakness has continued into 2Q and management has a cautious outlook for the quarter.”

According to TipRanks, out of the 8 analysts who have rated the company in the past 3 months, 2 are bullish, 1 is bearish, and 5 remain neutral. The average 12-month price target for the stock is $30.71, marking a 22% upside from where shares last closed.

OvaScience Inc (NASDAQ:OVAS) is down over 22% in pre-market trading after the company announced a proposed public offering of common stock. The company is offering 7,150,000 shares at $7 per share for around $46.8 million after deducting various expenses. The company will use the funds to finance its commercial expansion of its AUGMENTSM treatment in Japan and Canada, its key regions. The company will also use the proceeds for commercial actives related to its OvaPrimeSM and OvaTureSM treatment, as well as working capital and general corporate purposes. The company has offered the underwriters a 30 day option to purchase an additional 1,072,500 shares. The offering is expected to close on June 1, 2016.

According to TipRanks’ statistics, out of the 3 analysts who have rated the company in the past 3 months, 1 gave a Sell rating and 2 remain on the sidelines. The average 12-month price target for the stock is $5.50, marking a 44% downside from where shares last closed.

Flexion Therapeutics Inc (NASDAQ:FLXN) is up over 22% in pre-market trading after the company received positive guidance from the FDA on its NDA for Zilretta, its osteoarthritis treatment of the knew. The company announced they have received a response from the FDA to questions related to its pre-NDA meeting for Zilretta, stating that safety and efficacy data are “acceptable to support filing of an NDA submission.” As a result, the pre-NDA meeting is no longer necessary with the FDA response in its place.

CEO Michael Laymand, M.D., stated ““The endorsement from the FDA for the Zilretta NDA submission represents a major milestone in the development of this drug candidate and brings us one step closer to making it available to the many millions of knee osteoarthritis (OA) patients who lack good pain-relief options. We intend to submit the NDA in the fourth quarter of this year.”

According to TipRanks’ statistics, out of the 2 analysts who have rated the company in the past 3 months, both gave a Buy rating. The average 12-month price target for the stock is $44, marking a 284% upside from where shares last closed.

AcelRx Pharmaecueitcals Inc (NASDAQ:ACRX) is set to open higher this morning due to an announcement of positive study results from a Phase 3 SAP301 which examines ARX-04, a pain management drug, following various abdominal surgeries. The study met its primary endpoint of a statistically significant difference in pain intensity over the 12-hour study period compared to the placebo. ARX-04 was well tolerated by patients with mild adverse events such as nausea, headache, and vomiting being reported as the most common. The company will be presenting this data at Euroanaesthesia 2016, an event presenting the latest information in anesthesia and pain treatment.

According to TipRanks, out of the 5 analysts who have rated the company in the past 3 months, 3 gave a Buy rating while 2 remain on the sidelines. The average 12-month price target for the stock is $8.75, marking a 158% upside from where shares last closed.