Benchmark analyst Bruce Jackson raised his price target for Flexion Therapeutics (FLXN) to $25 from $19 after the company received FDA approval to update the product label for Zilretta for the treatment of osteoarthritis knee pain.

Shares of Flexion are up 13% to $21.70 in premarket trading. The label update includes the removal of language which stated that Zilretta was "not intended for repeat administration." The label now states that the "efficacy and safety of repeat administration of Zilretta have not been demonstrated," the company noted.

The revised product label should help Zilretta gain more widespread reimbursement from health insurers, Jackson wrote in a research note. The analyst, who reiterates a Buy rating on the shares, sees the new label as positioning Flexion for continued sales gains in 2020.