Insys Therapeutics, Inc. (INSY) is up more than 3% in pre-market trading after the Nasdaq-trade cannabis company reported its financial results for the second quarter, which ended on June 30th.
This report comes less than a month after Insys announced that the FDA approved Syndros, an orally administered liquid formulation of the pharmaceutical cannabinoid dronabinol, a pharmaceutical version of THC.
Insys expects to launch Syndros in the second half of 2016 and it is awaiting scheduling by the DEA. Syndros is approved for treating anorexia in patients who suffer from AIDS. It has also been approved to treat nausea and vomiting associated with cancer chemotherapy in patients who have failed to respond to conventional treatments.
Approximately 9,500 prescribers account for 70% of current dronabinol prescriptions. Insys expects to convert a large portion of the market to Syndros as well as expand the market through direct detailing to physicians, highlighting the improved product profile of Syndros.
Focused on Expanding
Insys generated $67.1 million in revenue in the second quarter, which is less than the $77.6 million generated in the same period last year. The results reflect a decline in Subsys prescription volumes due to softness in overall demand.
CEO Dr. John N. Kapoo is eager to expand Subsys’ commercial portfolio with a product that it believes to have distinct advantages over the current formulation of dronabinol in soft gel capsule and one that will provide significant long-term growth opportunities.
Outlook is Bright
Insys does not trade on earnings, it trades on FDA results and we do not expect these results to impact shares today.
Yesterday, Insys fell more than 4.4% and shares are trading at $15.20 after this move. We are holding INSY in our Mock Trading Portfolio and see value at current levels