Earlier shares climbed after a takeover rumor suggested that Sanofi (NYSE: SNY) made an offer to acquire the company.
"The media is reporting a potential takeout of Flexion by Sanofi, with shares up as much as 41% intraday (3/23) versus the S&P 500 up 0.4% intraday.
The timing of this speculation fits with the appropriate time for a company to be interested, we believe, given Flexion is within a year of approval and launch of its potential blockbuster, Zilretta.
Complicating the speculation, however, is Flexion's CFO recently announcing his retirement, which makes it seem less likely given CFO's rarely leave with an offer on the table, although an offer could have come in after the CFO's announcement.
"We just spoke with the CFO who provided almost no color other than to say that Flexion does not comment on speculation and that he (the CFO) still plans on resigning at the end of next week and will remain an active consultant until a replacement is found," Maris commented.