Insys Therapeutics (NASDAQ:INSY) Figures Increase

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By Stefan Larson on November 17, 2014 BioPharma

Shares of Insys Therapeutics (NASDAQ:INSY) are doing well. The third quarter results were very impressive; showing increasing sales growth for the drug Subsys, fentanyl opiate. The continuing success of Subsys can drive the investors to consider Insys Therapeutics (NASDAQ:INSY). The growth in sales provides the funds that are required for R&D of the marijuana drugs.

The third quarter sales of Insys Therapeutics (NASDAQ:INSY) increased by 105% YoY up to $58.2 million. The adjusted net income generated was $0.63 for each share. Last year, the net income per share was $0.39. The strength of sales helped the company’s balance sheet as well. The total cash inflow of the company was $89.5 million compared to $75 million in the month of June. This is very good news for the company, seeing as its expenditure in the R&D department increased to $7 million from $1.7 million.

The oral dronabinol is the closest drug in development to commercialization. This drug is used for treatment of anorexia in patients of HIV and nausea in patients who are taking chemotherapy. Oral dronabinol is basically new formulation of marinol. The market for generic marinol increases at a rate of 4% per year, and is worth $150 million. The drug being developed by Insys Therapeutics (NASDAQ:INSY) will be an easier dose to take and will show a faster reaction time. These advantages lead the company to believe that someday oral dorabinol will have generate nine-figure revenue.

Insys Therapeutics (NASDAQ:INSY) has a very amazing balance sheet. The company will be able to handle the increasing costs of its medical marijuana drug research and development department, without adding stocks to the stockholders.

The company is also working on synthetic marijuana, cannaboid. This drug can treat the Dravet Syndrome. This can be produced for target population as only a few thousand will have the disease. So, the FDA have put the orphan drug status on the cannaboid. This can help the company bring their drug into the market quikly. Early next year, Insys Therapeutics (NASDAQ:INSY) will start the first phase of the dosing study. Soon after the first trial is over, the company will commence the trial 3.

Insys Therapeutics (NASDAQ:INSY)’s management team is involved in private equity. Michael Babich, the CEO, had previously worked in a private equity firm that focused mostly on healthcare start-ups. From his experiences there, he may have learnt that C-suite decisions can only be made considering investors. If this is valid then the company has only its drug Subsys to appreciate. The growing earnings and sales can continue to help support the prices of shares in 2015.

Investors generate profits out of biotechnology by considering their potentials at an early stage. Investors recognize the true and actual potential of an investment before anyone else does. Currently, Insys Therapeutics (NASDAQ:INSY) is developing a drug that can revolutionize the health care industry. Analysts have determined the sales potential of the new drug and are all ready with their mouths watering.