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Actionable news in INSY: Insys Therapeutics, Inc.,

We Think Insys Is Still Too Toxic To Touch

Summary

INSY reported two days ago and posted results that showed some financial promise.

Subsys is steadying and the company's new drug Syndros shows promise for the future.

While the financials may turn around, sometimes we make our decisions on equities based on ethics or a feel for management; this is what has us avoiding INSY.

By Parke Shall

It's not often we make investment cases based simply on ethics, without considering the financials. We think Insys is one of the few that warrants a look of this nature.

We have not written about Insys (NASDAQ:INSY), the controversial company that sells fentanyl spray Subsys in months. It was reported earlier this week that Subsys sales started to stabilize when INSY reported financial results that were well received by the market,

  • Revenues: $67.1M (-13.5%)
  • Operating Income: $4.3M (-64.2%)
  • Net Income: $4.4M (-39.7%)
  • EPS: $0.06 (-40.0%)
  • Non-GAAP EPS: $0.13 (-38.1%)
  • Quick Assets: $158.4M (-0.4%)

But wait. Subsys continued sales rely on regulators making a finding of how much has been sold off label and any potential penalties the company may face as a result of ugly sales practices from the past.

The results and resultant financial stabilization had the stock up this week, continuing a run from lows near $11 back in June, months after we warned investors to question the company based on its alarming history of business practices. The company is still well off its 12 month highs near $43.

INSY data by YCharts

The financial results come almost two months to do the day after the FDA approved the company's Syndros for anorexia associated weight loss in certain patients. Seeking Alpha noted,

  • Insys Therapeutics (NASDAQ:INSY) is up 21% premarket on robust volume in response to its announcement that the FDA has approved its dronabinol oral solution, Syndros, for the treatment of anorexia-associated weight loss in patients with AIDS and the treatment of chemotherapy-induced nausea and...

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