Shares of Flexion Therapeutics Inc. (FLXN) continued to climb in premarket trading on Monday, Oct. 9, following Friday's announcement that the Burlington, Mass.-based firm has clinched approval from the U.S. Food and Drug Administration for osteoarthritis knee pain treatment Zilretta.
The stock ended Friday's trading session at $29.93, up 10.4%, and was up 3.6% to $31 ahead of the open on Monday.
"The approval and comprehensive label give us confidence that Zilretta can be a game-changer for OA knee pain," wrote Needham & Co. LLC analyst Serge Belanger in a note. Belanger maintained his buy rating on the stock and increased his price target to $42 from $36.
"We expect FLXN to garner increased interest from larger players looking to add a differentiated non-opioid asset with a significant market opportunity," he added.
Flexion spokesman Scott Young told Real Money on Monday that the company does not comment on market rumor or speculation.
"Our focus right now following the approval is to execute our commercial launch plan," Young said. "We've been preparing for this for three years. We're tremendously excited about the next chapter in Flexion's history."
Meanwhile, shares of Compugen Ltd. (CGEN) were up 8.6% to $3.86 after the Holon, Israel-based firm unveiled new data showing the potential of CGEN-15032 as a target for the development of cancer therapy. The data were generated as part of a research pact with the Johns Hopkins University School of Medicine.
Also on Monday, Compugen said it has extended its multi-year immuno-oncology research collaboration with JHU, which was first announced in December 2014. The collaboration is "now expanded to include new additional targets discovered by Compugen which have the potential to serve as a basis for the development of cancer immunotherapy treatments," the company said.
Among the other biotech stock movers was PTC Therapeutics Inc. (PTCT) , down 8.2% to $18.02.