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."

For an analyst ratings summary and ratings history on INSYS Therapeutics click here. For more ratings news on INSYS Therapeutics click here.

Shares of INSYS Therapeutics closed at $25.43 yesterday.

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