Ladenburg ups Flex Pharma PT to $20 from $13

Flex Pharma

Ladenburg Thalmann raised its price target for Flex Pharma (NASDAQ:FLKS) to $20 from $13 after the company announced that its lead asset, FLX-787, reduced the frequency of cramps/spasms in a 57-patient, placebo-controlled, two-period crossover study. The stock closed at $5.13 on March 28.

“The results were impressive, in our view, with significant improvements in the frequency of cramps/spasms, cramp-free days and Clinician’s Global Impression of Change in spasticity, while tolerability continues to be excellent,” writes analyst Michael Higgins.

He said Phase 2 data in amyotrophic lateral sclerosis and Charcot-Marie-Tooth disease are expected in the first quarter of 2019, while Phase 1/2a trials in dysphagia and dialysis cramps are planned for the second quarter of 2018, with data in the third quarter this year.

“Given the prior amount of data with FLK-787 in spasticity, we conservatively modeled the clinical success in MS spasticity at 20%,” he said. “However, with [the latest] evidence, we are increasing our likelihood to 30%.”