Insys Therapeutics Q4 Beat Drives Short-Lived Rally
Specialty generic drugmaker Insys Therapeutics (NASDAQ:INSY) beat analysts’ Q4 estimates Tuesday, but it got only a short-lived boost on the stock market.
Insys made 53 cents a share in the quarter, excluding one-time items, up 13% from the year-earlier quarter and beating analysts’ consensus by 9 cents. Revenue rose 65% to $66.5 million, about $2 million more than expected, according to Thomson Reuters.
For the year, sales more than doubled to $222 million, while earnings climbed 62% to $2.15 a share.
As usual, nearly all the revenue came from Subsys, an under-the-tongue spray version of the painkiller fentanyl, sold in other forms as Actiq and Fentora by Teva Pharmaceutical Industries (NYSE:TEVA).
This year, however, Insys is launching late-stage clinical trials on three other products, a process that’s hiking its spending.
“EPS upside of +$0.05 was driven by adjusted tax of +$0.26 with slightly higher gross profit of +$0.03 offset by higher G&A (general and administrative spending of) -$0.10, S&M (sales and marketing) -$0.06 and R&D (research and development) -$0.12,” wrote RBC Capital Markets analyst Randall Stanicky in a research note. “While spend was much higher in 4Q (which included a $7.2 million external legal fee), our 2015 model (and we think broader expectations) had already ramped up on spending in 2015 combined (with) a full tax rate.”
Insys stock has been on a roll since last year, hitting a new high of 61.52 on Thursday. It sold off 7% on Monday, perhaps due to a Canadian campaign against fentanyl abuse that hit the news wires that day. (An Ohio newspaper also reported a surge of fentanyl-related deaths in the Springfield area.)
On the stock market today, Insys opened up 3% but quickly fell back; by midmorning, it was down more than 5%, near 53.
Follow Amy Reeves on Twitter: @IBD_Areeves.
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