Flex Pharma Inc (NASDAQ:FLKS) shares advanced 11.08% on Friday to $12.43 after the company printed stronger than expected earnings figures.
Flex Pharma Inc (NASDAQ:FLKS) is a biotechnology company that develops treatments for nocturnal leg cramps, muscle cramps and spasms associated with severe neuromuscular conditions, and exercise associated muscle cramps. Its product candidates, primary of which is FLX-787, activate certain receptors in primary sensory neurons, which then act through neuronal circuits to reduce the repetitive firing, or hyperexcitability, of alpha-motor neurons in the spinal cord, thereby preventing or reducing the frequency and intensity of muscle cramps and spasms.
Based on its latest earnings report released during the first week of May, the company had earnings per share of ($0.61) missing analysts’ estimates at ($0.56). The net loss of $9.6 million for the period included $1.5 million of stock-based compensation expense. In addition, a bulk of the loss was also attributed to operating expenses related to its research and development efforts, costs associated with the development of the Company’s consumer brand and cornerstone product, and general and administrative costs.
A few weeks later, it was reported that insiders had been loading up on Flex Pharma Inc (NASDAQ:FLKS) shares. According to SEC filings on May 19, CEO Christoph H. Westphal purchased 33,400 shares on May 17 at $11.10 per share for a total value of $370,708.00. Prior to this, company director Michelle Stacy purchased 2,585 shares at $9.63 per share price on March 16 while Westphal purchased 15,469 shares at $10.24 per share price on May 17.
Flex Pharma Inc (NASDAQ:FLKS) shares are now trading close to the 52-week high of $12.60, suggesting that profit-taking activity off these long positions might be seen soon and trigger a selloff to $12.00 or until the yearly range support at $11.14 later on. Additional volatility was noted towards the latter half of last week, as trading volume jumped to 63,619 shares on Thursday.
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