$Bob's and Jbem's Bitchin' Bios

[salgovernale69]

FLXN - Very Strong Buy Here IMO at $14.87

Anyone familiar with this gem? They have fairly de-risked Phase 3 data for osteoarthritis due sometime in February per their CEO on their last quarter's earnings call. This is obviously a massive, massive multi-billion dollar market and the currently trades at a market cap of just over $300M due to missing the primary endpoint on their phase 2b in 2015. That sent their stock tumbling from the $30's down to this level.

The endpoint was a reduction in pain and it was met at weeks 1-11 and week 13, but missed on week 12 due to regular patient dropout and thus the data was not statistically significant. The latest Seeking Alpha article summarizes it nicely:

http://seekingalpha.com/article/3847906-flexion-therapeutics-tremendous-upside

The company currently has close to $130M in cash and burns only $3M per month. Their tute ownership is off the charts, close to 90%, with Prudential having upped their stake to almost 14% during the last quarter. Total O/S shares only 21M leaving only about 2M shares in the float.

If you read the last conference call transcript you'll get a better feel for the confidence they have in their imminent data release:

http://seekingalpha.com/article/3668976-flexion-therapeutics-flxn-ceo-michael-clayman-on-q3-2015-results-earnings-call-transcript

I'm loading this heavy here and holding through data. In this biotech environment, I'm sticking to companies that are flush with cash and have very heavy tute ownership. If data is good, which seems very likely here, this one will be a big winner from the $15 range regardless of what the IBB is doing.