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7 Things To Know About Insys' Second Quarter Earnings

August 3, 2017

 (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. 

 

 

  1. ​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. 

  2. 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. 

  3. 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.

  4. 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. 

  5. Net loss for Q2'17 was $8.2 million, or a loss of $0.11 per basic and diluted share. 

  6. 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. 

  7. 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. 

 

Market Reaction 

 

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. 

 

Conclusion

 

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

 

To stay up to date with developments in the cannabinoid biotech space be sure to subscribe to our free cannabinoid biotech & pharma email newsletter if you haven't already. 

 

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Now Read: 7 Things To Know About Zynerba's Pipeline & Q2 Earnings Release

 

D/M/O

 

Disclaimer
 
Investing in nanocap, microcap, and small cap stocks is highly speculative. The publishers of DailyMarijuanaObserver.com are not registered as Investment Advisors or Broker-Dealers in any jurisdiction whatsoever. The information contained on DailyMarijuanaObserver.com (“this site”) has been prepared solely for informational purposes. Nothing on the site is an offer or solicitation to buy or sell securities. Investors should seek financial advice regarding the appropriateness of investing in any securities mentioned from their financial advisor.

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Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.