Insys Therapeutics (INSY) Stock Soars on FDA Approval

Insys Therapeutics (INSY) stock is trading sharply higher this afternoon after receiving FDA approval for Syndros.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Insys Therapeutics (INSY) are up 8.24% to $14.58 on heavy trading volume Tuesday afternoon after receiving FDA approval for Syndros, a treatment for anorexia associated with weight loss in patients with AIDS.

The medication also treats nausea and vomiting associated with chemotherapy. 

It is a pharmaceutical version of tetrahydrocannabinol, or THC, which is the primary ingredient in cannabis.

"We expect that Syndros' attractive profile will enable rapid market conversion and expansion, making for a significant long-term commercial opportunity for Insys," CEO Dr. John Kapoor said in a statement.

The Phoenix, AZ-based pharmaceutical company hopes to launch Syndros in the second half of this year. 

About 6.66 million shares of Insys have been traded so far today, well above the company's average trading volume of roughly 697,105 shares per day. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Insys' strengths such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins are countered by weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: INSY

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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