Piper Jaffray analyst David Amsellem says the settlement with the Department of Justice does not mean there isn’t downside risk in shares of Insys Therapeutics. For a $600M market capitalization, investors are getting a sublingual form of buprenorphine that was “roundly rejected” by an FDA panel in May, a cannabidiol product that has yet to demonstrate proof-of-concept in a well-controlled trial, a product in Syndros that has minimal sales after approximately one year of active promotion, and a declining asset in Subsys that has limited profitability, Amsellem tells investors in a research note following Insys’ Q2 results. The analyst does not believe the shares are “adequately risk-adjusted.” He reiterates an Underweight rating on Insys with a $4 price target.
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