(Image Credit - Investment Zen)
Before the market open today, Insys Therapeutics (NASDAQ:INSY) announced the company's financial results for the second quarter of 2017 and hosted a conference call to discuss the results. Here are 7 things (not in any particular order) that current and prospective investors in Insys should pay attention to from the company's recent earnings release.
Net revenues in Q2'17 were $42.6 million, down 38% from $69.2 million in the second quarter of 2016. The revenue decline observed in the quarter can be attributed to lower Subsys prescriptions (the company's only commercialized product in this reporting quarter) related to soft demand for long-acting opioids more broadly.
Sales and marketing expenses increased to 38% of net revenues in Q2'17, or $13.3 million compared to 28% of net revenue, or $19.7 million in the second quarter of last year.
Research and development expenses decreased to $14.1 million for Q2'17 versus $22.9 million in Q2'16. This decrease in R&D expenses can be attributed to the timing of new product development costs.
Insys reported $4.5 million in charges relating to litigation and government settlements. This charge represents an estimated potential settlement with the State of Illinois.
Net loss for Q2'17 was $8.2 million, or a loss of $0.11 per basic and diluted share.
In the conference call, Insys highlighted the launch of Syndros, their recently commercialized dronabinol (synthetic THC) oral solution. The company's sales approach is to target doctors that currently prescribe Marinol (AbbVie's dronabinol tablet) and 'sell them' on the benefits of Syndros' alternate delivery system. Management estimates that Syndros has the potential of becoming a $200 million/per year product at peak sales.
During the call, the company's Chief Medical Officer, Santosh Vetticaden highlighted their cannabinoid pipeline (beyond Syndros). Insys' has successfully produced synthetic pharmaceutical CBD that is 99.5% pure. The company is currently conducting stage one and two trials of both synthetic and naturally derived CBD for indications including multiple types of catastrophic childhood epilepsy, gliomablastoma, glioma, pediatric schizophrenia and more. They have attained an orphan drug designation for their potential CBD treatment in the indications of gliomablastoma, glioma and pediatric schizophrenia.
In midday trading on the day of the release, shares of Insys are falling more than 7% on volume that is already higher than the company's 30-day average volume. Year-to-date, shares of Insys remain up roughly 10%. That said, in recent weeks, INSY has given back some of its gains on the year as concern builds regarding the DOJ investigation of Subsys and related items.
Be sure to check out Insys' marijuana stock profile to learn more and view a custom stock chart. Remember, shares of Insys can be traded commission-free using the Robinhood app.
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