Subsys Pushes Insys Therapeutics (INSY) to 3Q Beat; Piper Jaffray Reiterates Overweight
Piper Jaffray reiterated an Overweight rating on INSYS Therapeutics (NASDAQ: INSY), and raised the price target to $49.00 (from $48.00), following the company's 3Q15 earnings report. Insys reported 3Q15 EPS of $0.50, on revenues of $91M, well ahead of Street estimates. Subsys once again showed strong sequential growth, with sequential sales growth of 19% over 2Q15. Management suggested that part of the strength was a continued shift of the dosing mix towards more expensive higher strengths.
Analyst David Amsellem commented, "Insys reported 3Q15 EPS of $0.50, on revenues of $91M (nearly all of which are from Subsys), well ahead of Street estimates. Subsys once again showed strong sequential growth, as the product continues to take share from older trans-mucosal immediate release fentanyl (TIRF) products. Also noteworthy was the departure of CEO Michael Babich, though we would view the change at the top as a natural evolution for a company with a deep, advancing pipeline that will be supporting multiple product launches in the coming years. With strong visibility on a long-term EPS CAGR (2016-2020) of potentially 30%+ (and only reflecting contribution from Subsys and dronabinol oral solution, which has an FDA action date of 04/01/16), INSY is attractively valued in the context of a 2016 P/E of 23x. We reiterate our Overweight rating and are raising our PT to $49 from $48, reflecting modest adjustments to our estimates."
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Shares of INSYS Therapeutics closed at $25.43 yesterday.