Flamel Technologies S.A. Receives a Buy from Leerink Swann

By Jason Carr

Leerink Swann analyst Jason Gerberry reiterated a Buy rating on Flamel Technologies S.A. (NASDAQ: FLML) yesterday and set a price target of $16. The company’s shares closed yesterday at $9.40.

Gerberry noted:

“We are raising our topline forecast for 2016 due to FLML’s better than expected value retention for Éclat products but we’re trimming our out-yr ests due to disappointing FSC results. In 3Q, FLML delivered top-line revenue of ~$32m, coming in ~$1m (+3%) ahead of consensus estimates. For the full year 2016, the Éclat products (phenylephrine and neostigmine) continue to hold stable market positions which were the key reason for mgmt.’s ’16E guidance increase. Also, we were encouraged by the early uptake for Akovaz, which drove the 4% increase in top-line guidance to ~$138m for FY16. Updates on the call included: (1) move to Ireland– FLML’s cross-border move to Ireland will go into effect on 1/1/2017 as the company looks to improve its tax structure and the company will operate as Avadel Pharmaceuticals [ticker: AVDL]; (2) Sodium oxybate (narcolepsy)– mgmt expects to dose its first patients in December. Our base case for sodium oxybate assumes, a 1-yr recruitment and early 2018 pivotal readout.”

According to TipRanks.com, Gerberry is ranked 0 out of 5 stars with an average return of -9.9% and a 23.6% success rate. Gerberry covers the Healthcare sector, focusing on stocks such as Sucampo Pharmaceuticals, Pacira Pharmaceuticals, and Eleven Biotherapeutics.

Currently, the analyst consensus on Flamel Technologies S.A. is Strong Buy and the average price target is $35, representing a 272.3% upside.

In a report released yesterday, SunTrust Robinson also reiterated a Buy rating on the stock with a $35 price target.

The company has a one year high of $15.55 and a one year low of $7.56. Currently, Flamel Technologies S.A. has an average volume of 132.9K.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FLML in relation to earlier this year.

Flamel Technologies SA engages in the research, development and commercialization of pharmaceutical products. Its portfolio includes Bloxiverz, Vazculep, Micropump, LiquiTime, Trigger Lock and Medusa. The company was founded by Gérard Soula in August 1990 and is headquartered in Vénissieux, France.