Fly News Breaks for April 10, 2019
Apr 10, 2019 | 14:27 EDT
Shares of Flexion Therapeutics are trading lower after the company announced at an investor conference that it made a decision to hire a Chief Commercial Officer and that its current head of commercial, Dan Deardorf, will be leaving the company shortly, Wells Fargo analyst David Maris tells investors in a research note. Flexion also reaffirmed its 2019 revenue guidance of $65M-$80M, Maris points out. After speaking with management, the analyst believes Flexion "was not thrilled" with 2018 Zilretta growth and is looking for ways to accelerate growth and uptake of Zilretta. This is creating additional uncertainty with investors, especially since earlier this year the 2019 sales guidance fell below consensus, says Maris. Further, "it seems reasonable to think that when things are going exceptionally well in a launch, the head of commercial typically does not leave," he contends. Nonetheless, Maris believes that at less than two-times 2020 sales for a "growing product," Flexion shares represent a "compelling value." Zilretta will be a growth product for the next several years, he writes. Maris keeps an Outperform rating on Flexion, which is down 17%, or $2.06, to $10.36 in afternoon trading.
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