Insys (INSY)

History of the Company

Insys Therapeutics was formed in 1990 by John Kapoor in Arizona, USA. Its current CEO is Saeed Motahari, who replaced Kapoor when he retired in 2017. Insys is best known for its production of Subsys, which is a spray containing the powerful opioid drug fentanyl. Subsys is sprayed under the tongue as an effective pain relief, especially valued by cancer patients.

The company also produces Syndros, which is a synthetic cannabinoid. Rather than risk growing cannabis, this has enabled Insys to explore the potential of cannabinoids for a range of medical conditions. Syndros is approved by the US Food and Drug Administration (FDA) for the relief of nausea, sleep apnea and HIV related anorexia.

Insys has been involved with political campaigns to oppose the legalization of cannabis in Arizona. The company has invested heavily in new cannabinoid products, and its opponents accuse it of trying to protect this investment. If cannabis is legalized, its medicinal benefits will be much easier to access without Insys.

Trading Insys: What You Need to Know

  • As of 3 January 2019, Insys’ share price on the NASDAQ was $4.07 USD. This is down from $4.35 at the same time in 2018. The highest price it achieved in 2018 was $10.70.
  • As a comparison, in July 2015, Insys’ share price reached $44.92 USD. It suffered sharp declines throughought 2015 and into 2016. From a high of $18.37 in August 2016, its yearly averages have been steadily less than this, and decreasing year on year.
  • In August 2018, Insys agreed to a legal settlement of $150 million with the US Department of Justice (DOJ), which had sued it for paying kickbacks to doctors to subscribe Subsys.
  • Subsys is based on the synthetic drug fentanyl, which is a synthetic opioid ten of times stronger than morphine. It is extremely addictive and is the cause of a growing public health crisis across North America. Isys founder Kapoor is facing separate court action by the DOJ.
  • As a result of the DOJ’s action, Insys has worked hard to improve its public image and working practices. As well as replacing its board members, it has started to focus on cannabinoids.
  • Insys has applied for two NDAs for new cannabis-based products for 2019. These are two nasal sprays which replace the opioid base of Subsys with cannabinoid active compounds.
  • As the Insys share price is extremely low as of January 2019, the company may be a wise investment. If their actions are successful, they have the experience, infrastructure and backup to be worth long-term interest.

Anyone wanting to invest in Insys stocks should analyze the therapeutic drug market in light of potential legislation.

Trade INSY