Flexion Therapeutics is having an overwhelmingly strong start to the trading session today. After FiercePharma made an announcement that the company is nearing a deal with Sanofi, the stock spiked in a big way, prompting our partners at Trade Ideas to alert us to the movement. At the moment (10:30), FLXN is trading at $24.67 per share after a gain of $4.99 per share (25.36%) thus far today.
FLXN Nears $1 Billion Deal With SNY
As mentioned above, Flexion Therapeutics is having an overwhelmingly strong start to the trading session as reports break that the company is close to closing a $1 billion deal with Sanofi. According to a source close to the story, Sanofi is considering purchasing the company and the deal is close.
According to the release, the price on the acquisition, if it happens, will come in the range of the mid-30’s per share. This makes sense, as FLXN has a knee injection product for osteoarthritis that would fit well with SNY’s biosurgery division, which also markets an osteoarthritis injectable. Nonetheless, this report has been unconfirmed. While it looks like there’s definitely validity to this one, it’s important to treat the story as a rumor until confirmation comes.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching to see if FLXN is acquired by SNY. While we are treating this as a rumor at the moment, there’s a much stronger probability of an acquisition actually happening than we see with most rumors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Update 11:02: SNY refuses to comment on FLXN takeover rumor.
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