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•	Clinical Efforts

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In February 2016, the Company announced statistically significant positive human efficacy on key endpoints in a randomized, controlled, blinded study of subjects with frequent nocturnal leg cramps. The Company’s extract formulation demonstrated statistically significant effects (p<0.05) on key endpoints: muscle cramp frequency; cramp-free days; the physician-rated Clinical Global Impression of Change (CGI-C); specific sleep disturbance measures; and specific pain measures. Additionally, the product appeared to be safe and well-tolerated and there were no serious adverse events reported. The magnitude of efficacy in this study on reduction in muscle cramps appears similar to published quinine efficacy studies. Quinine, the only therapeutic intervention for leg cramps with randomized, controlled, blinded study support for efficacy, is associated with serious adverse events and was banned for the treatment of leg cramps by the FDA. In the UK, where quinine is still prescribed, 4.5 million prescriptions were written in 2013, for a population one-fifth of the size of the United States.

•	Flex Pharma announced in November 2015, the selection of FLX-787 as its clinical candidate for studies outside the United States. FLX-787 is a purified, GMP-synthesized single agent consisting of one highly selective and specific TRPA1 and TRPV1 channel agonist that has demonstrated statistically significant efficacy in its muscle cramp model.

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Over the past year, Flex Pharma presented data at several scientific and medical meetings, including the Annual Meeting of the American Academy of Neurology (AAN), the European Committee for Treatment and Research of Multiple Sclerosis (ECTRIMS), the Society for Neuroscience, the 26th International Symposium on amyotrophic lateral sclerosis (ALS)/motor neuron disease (MND), and the Americas Committee for Treatment and Research in Multiple Sclerosis (ACTRIMS).

•	Consumer Launch

•	In October 2015, the Company announced an exclusive partnership with World Champion triathlete Craig “Crowie” Alexander from Australia around its scientific breakthrough to prevent and treat muscle

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In September 2015, the Company launched a print and digital campaign with the objective to build awareness and educate consumers that the root cause of muscle cramping is the nerve, not the muscle. To date, the Company’s findings and its development of the first scientifically proven formula to treat and prevent muscle cramps have appeared in Outside Magazine, Competitor, Runner’s World, Bicycling, and Running Times, among other publications.

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In May 2015, the Company’s proprietary formulation earned certification from NSF International's Certified for Sport® program. NSF's Certified for Sport® program certifies ingredients and tests products to ensure they do not contain contaminants or banned or prohibited substances. The MLB, MLB Player's Association, NFL, NFL Player's Association, PGA, LPGA and the CCES (Canadian Centre for Ethics in Sport) have all chosen NSF's Certified for Sport® program.

•	Corporate

•	In 2015, Flex Pharma raised $87.9 million in gross proceeds and $79.9 million in net proceeds from the sale of 5,491,191 shares of common stock in an initial public offering.

•	On April 1, 2015, Flex Pharma was added to the Russell 3000, Russell 2000, and Russell Microcap Indices as part of Russell Investments' first quarter 2015 IPO additions.

•	Flex Pharma was added to the NASDAQ Biotechnology Index (Nasdaq:NBI), on Monday, December 21, 2015. The NBI is designed to track the performance of a set of securities listed on The Nasdaq Stock Market® that are classified as either biotechnology or pharmaceutical according to the Industry Classification Benchmark (ICB).

•	Expanded Board of Directors and Scientific Advisory Board

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In March 2016, Michelle Stacy, former President of Keurig Inc., joined the Board of Directors of Flex Pharma. As the former President of Keurig, Inc. and former Vice President and General Manager with Gillette/P&G, Ms. Stacy brings a wealth of experience leading consumer businesses and building global brands. During her five-year tenure at Keurig Inc., a division of Keurig Green Mountain, the company's revenue grew from $493 million in FY2008 to $4.3 billion in FY2013.

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In September 2015, Robert Perez, former Chief Executive Officer of Cubist Pharmaceuticals, Inc., was appointed to Flex Pharma’s Board of Directors. Mr. Perez joined Cubist in 2003, as Senior Vice President, Sales and Marketing and led the launch of Cubicin® (daptomycin for injection). He served as Executive Vice President and Chief Operating Officer (COO) for the company from 2007 to 2012 and President and COO from 2012 to 2014. Prior to joining Cubist, he served as Vice President of Biogen, Inc.’s CNS Business Unit from 2001 to 2003, where he was responsible for commercial leadership of an $800 million neurology business unit and from 1995 to 2001, held positions of increasing responsibility within the commercial organization.

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In June 2015, Alfred Sandrock, Jr., M.D., Ph.D., Chief Medical Officer of Biogen (NASDAQ: BIIB), joined Flex Pharma’s Scientific Advisory Board. Dr. Sandrock is Biogen’s Executive Vice President, Neurology Discovery & Development Center, Neurodegeneration Therapeutic Area and Chief Medical Officer and has served in this position since November 2015. Dr. Sandrock served as Group Senior Vice President from May 2014 to October 2015 as well as Chief Medical Officer since February 2012. Since joining Biogen in 1998, Dr. Sandrock has held several senior executive positions, including Senior Vice President of Development Sciences, Senior Vice President of Neurology Research and Development, and Vice President of Clinical Development, Neurology.

•	Strengthened Leadership Team

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Kathie Lindemann was appointed Chief Operating Officer in September 2015. Prior to joining Flex Pharma, Ms. Lindemann served as Chief Operating Officer at DAVIDsTEA Inc. Ms. Lindemann also spent 19 years at Starbucks where she held several leadership roles including Senior Vice President, Starbucks Foodservice, SVP US Business Operations, and SVP International Operations, Store Development and Global Business Systems.

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Cash Position: As of December 31, 2015, Flex Pharma had cash, cash equivalents and marketable securities of $93.7 million. During the three months ended December 31, 2015, cash, cash equivalents and marketable securities decreased by $5.5 million. For the year ended December 31, 2015, cash, cash equivalents and marketable securities increased $59.8 million, which included the proceeds from the closing of the Company's initial public offering in the first quarter of 2015, raising net proceeds of $79.9 million.

•	R&D Expense: Research and development expense for the three months ended December 31, 2015 was $3.3 million, and $12.7 million for the year

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G&A Expense: General and administrative expense for the three months ended December 31, 2015 was $4.6 million, and $16.5 million for year ended December 31, 2015. General and administrative expense for these periods primarily includes personnel costs (including salaries as well as stock-based compensation costs), costs related to developing the Company’s consumer brand and cornerstone product, legal and accounting costs, and external consultant costs.

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Net Loss and Cash Flow: Net loss for the three months ended December 31, 2015 was ($7.9) million, or ($0.51) per share. Net loss for the three months ended December 31, 2015 included $1.7 million of stock compensation expense. Cash, cash equivalents and marketable securities decreased by $5.5 million during this period. For the year ended December 31, 2015, net loss was ($29.1) million, or ($2.08) per share and included $6.6 million of stock-based compensation expense. Cash, cash equivalents and marketable securities increased $59.8 million during the year. As of December 31, 2015, Flex Pharma had 15,741,618 shares of common stock outstanding. The net loss for the fourth quarter of 2015, as well as for the year ended December 31, 2015, was primarily driven by the Company’s 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.

•	Jefferies Healthcare Conference, June 7-10, 2016 in New York, NY

•	Piper Jaffray Consumer Conference, June 14-15, 2016 in New York, NY

•	JMP Securities Healthcare Conference, June 21-22, 2016 in New York, NY

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(1)

As of December 31, 2015, the Company had issued approximately 5.4 million shares of restricted stock that are subject to vesting. Of these shares, approximately 3.2 million shares had vested at December 31, 2015 and are outstanding for purposes of computing weighted average shares outstanding. The remaining shares will be included in the weighted average share calculation as such shares vest over approximately the next two years.