Flexion Therapeutics Offering To Raise $122.4 Million

Flexion Therapeutics announced a proposed public offering of 4 million shares to raise $122.4 million to market osteoarthritis knee pain treatment Zilretta. The company recently received FDA approval for Zilretta.

Flexion Therapeutics is a specialty pharmaceutical company focused on the development and commercialization of local therapies for the treatment of patients with musculoskeletal conditions, beginning with osteoarthritis (OA), a type of degenerative arthritis.

Flexion Therapeutics Stock Chart

Flexion Therapeutics stock chart.

The stock has pulled back and looks like a good swing long setup. There is a beautiful positive divergence between large players volume and the stock price. The Twiggs Money Flow is negative as traders took profit on the massive spike up from the FDA approval of Zilretta.

Prices have been consolidating lately. There is a very little resistance above the current price. There is a support zone below the current price at $24.63, a stop order could be placed below this zone.

Flexion Therapeutics Review
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Summary

Profitability

FLXN's Return On Assets of -25.00% is among the best of the industry. FLXN does better than the industry average Return On Assets of -41.76%. FLXN has a Piotroski-F score of 4. This indicates an average health and profitability for FLXN. The profitability ratios for FLXN are negative, so there is not much use analyzing them.

Valuation

When comparing the current price to the book value of FLXN, we can conclude it is fairly valued. It is trading at 4.70 times its book value. When comparing the price book ratio of FLXN to the average industry price book ratio of 4.19, FLXN is inline with its industry peers. The Price/Earnings Ratio is negative for FLXN. In the last year negative earnings were reported. Also next year FLXN is expected to report negative earnings again, which makes the Forward Price/Earnings Ratio negative.

Growth

When comparing the growth rate of the last 5 years to the growth rate of the upcoming 2 years, we see that the growth is accelerating. FLXN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.18%.

Health

A Current Ratio of 18.29 indicates that FLXN has no problem at all paying its short term obligations. FLXN is one of the better placed companies in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 4.63. FLXN has better rating than 94% of its industry peers. A Quick Ratio of 18.29 indicates that FLXN has no problem at all paying its short term obligations. Its Current Ratio is much better than the industry average of 4.45. FLXN has better rating than 94% of its industry peers. An Altman-Z score of 2.59 is not a great score, but indicates only limited risk for bankruptcy at the moment. The Altman-Z score is inline with the industry averages, which is at 1.84. The Piotroski-F score of FLXN is 4. This is a neutral score and indicates average health and profitability for FLXN. When comparing the Debt to Equity Ratio of FLXN to the average industry Debt to Equity Ratio of 0.00, FLXN required more debt to finance its operations than its industry peers.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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