Is Flexion Therapeutics Inc (FLXN) M&A Buzz Just a Dream?


Flexion Therapeutics Inc (NASDAQ:FLXN) investors have sent shares racing 38% on back of media buzz painting the arc of a prospective takeout, courtesy of Sanofi. Though Wells Fargo analyst David Maris remains positive on the biotech firm, his confidence does not extend to the actuality of the merger coming to fruition.

No longer does the analyst anticipate a takeover is happening, considering the CFO is now on his way out.

Nonetheless, despite the grey ambiguity of where to draw the line between acquisition guesswork and its probability of coming true amid the CFO departure piece of the puzzle, the analyst reiterates an Outperform rating on shares of FLXN with a $30 price target, which represents a 10% increase from where the stock is currently trading.

“The media is reporting a potential takeout of Flexion by Sanofi, with shares up as much as 41% intraday (3/23) versus the S&P 500 up 0.4% intraday. The timing of this speculation fits with the appropriate time for a company to be interested, we believe, given Flexion is within a year of approval and launch of its potential blockbuster, Zilretta. Complicating the speculation, however, is Flexion’s CFO recently announcing his retirement, which makes it seem less likely given CFO’s rarely leave with an offer on the table, although an offer could have come in after the CFO’s announcement. We have reached out to the company and have not yet heard back,” Maris contends.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst David Maris is ranked #1,118 out of 4,549 analysts. Maris has a 43% success rate and realizes 7.4% in his annual returns. When recommending FLXN, Maris yields 34.6% in average profits on the stock.

TipRanks analytics demonstrate FLXN as a Buy. Based on 2 analysts polled by TipRanks in the last 3 months, both rate a Buy on Flexion stock. With a return potential of 24%, the stock’s consensus target price stands at $33.50.

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