Oppenheimer Reaffirms Their Hold Rating on Insys Therapeutics

By Carrie Williams

Oppenheimer analyst Derek Archila maintained a Hold rating on Insys Therapeutics (NASDAQ: INSY) yesterday. The company’s shares closed on Friday at $5.16, close to its 52-week low of $4.10.

Archila wrote:

“On 11/2, INSY reported a financial and business update. We adjust our model accordingly. Our thesis for INSY is unchanged as we remain cautious on the shares as Subsys sales/scripts struggle to find a bottom and ahead of a potential DOJ settlement. We give INSY’s new management team credit for providing some transparency around a potential minimum settlement/payment terms, though based on our estimates and management’s proposed settlement terms, we believe it may still necessitate INSY’s need for cash. We prefer to remain on the sidelines until we get more clarity on the magnitude of a DOJ settlement and await a material improvement in INSY’s base business. We maintain our Perform rating.”

According to TipRanks.com, Archila is ranked 0 out of 5 stars with an average return of -17.4% and a 18.9% success rate. Archila covers the Healthcare sector, focusing on stocks such as Synergy Pharmaceuticals Inc, Zynerba Pharmaceuticals, and Pacira Pharmaceuticals.

Currently, the analyst consensus on Insys Therapeutics is Moderate Buy and the average price target is $9, representing a 74.4% upside.

In a report issued on November 2, Piper Jaffray also reiterated a Hold rating on the stock with a $5 price target.

Based on Insys Therapeutics’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $30.67 million and GAAP net loss of $166 million. In comparison, last year the company earned revenue of $57.77 million and had a net profit of $2.93 million.

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INSYS Therapeutics, Inc. is a c pharmaceutical company, which develops and commercializes supportive care products. It focuses on utilizing commercial pharmaceutical products.