UPDATE: MLV & Co Initiates Coverage On Flexion Therapeutics On Multiple Positive Factors

In a report published Tuesday, MLV & Co analyst Ken Trbovich initiated coverage on Flexion Therapeutics, Inc. (NASDAQ: FLXN) with a Buy rating and $38.00 price target.

In the report, MLV & Co noted, "Flexion's stock has performed well since its IPO last year, but we think it is far from finished given its potential to complete pivotal studies in the next 12 months, file an NDA and receive approval for FX006 in 2017. FX006, is a long-acting injectable steroid, which has been shown to have greater efficacy (≈60% reduction in pain) than existing immediate-release steroids injected into the knee to treat osteoarthritis pain.

"The treatment effect of FX006 is much larger than currently approved hyaluronic-based (HA) products (≈40% reduction in pain) that struggle to show a benefit relative to placebo (≈30% reduction in pain)."

Flexion Therapeutics closed on Monday at $22.38.