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Summary

  • 3 insiders purchased Insys stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • 2 of these 3 insiders increased their holdings by more than 10%.

Insys Therapeutics (NASDAQ:INSY) develops and commercializes supportive care products.
(click to enlarge)

Insider buying during the last 30 days

Here is a table of Insys' insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Theodore StanleyDirectorMay 15-194,0006,100 shares+190.5%
Patrick FourteauDirectorMay 157,500105,000 shares+7.7%
Steven MeyerDirectorMay 155,0005,000 sharesfrom 0 to 5,000

There have been 16,500 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Insys' insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
May 201416,5000
April 201400
March 2014900438,364
February 201400
January 2014030,000
December 201350027,428
November 201300
October 201300
September 201300
August 20136,0000
July 201300
June 20131,2500
May 201363,0000
April 201300
March 201300
February 201300
January 201300

(Note: On March 28, 2014, Insys effected a 3-for-2 stock split)

There have been 88,150 shares purchased and there have been 495,792 shares sold by insiders since January 2013.

Financials

Insys reported the first-quarter financial results on May 13 with the following highlights:

Revenue$41.6 million
Net income$7.7 million
Cash$47.3 million

The three insiders purchased their shares after these results.

Outlook

Insys expects Subsys net revenue in excess of $52 million in the second quarter of 2014.

Pipeline and upcoming milestones

Insys currently markets two products, Subsys, which is sublingual Fentanyl spray for break through cancer pain, and a generic version of Dronabinol capsules.

(click to enlarge)
(Source: Investor presentation)

Insys expects to file one new drug application and at least four investigational new drug applications with the Food and Drug Administration in 2014.
(click to enlarge)

(Source: Investor presentation)

Competition

Insys' Subsys competitors include Teva Pharmaceutical Industries' (NYSE:TEVA) Fentora and Actiq, Galena Biopharma's (NASDAQ:GALE) Abstral, Depomed's (NASDAQ:DEPO) Lazanda, and BioDelivery Sciences International's (NASDAQ:BDSI) Onsolis. Here is a table comparing these companies.

CompanyINSYTEVAGALEDEPOBDSI
Market Cap:884.48M42.95B271.46M691.83M463.59M
Employees:20244,9456029124
Qtrly Rev Growth (yoy):2.770.02N/A1.9211.76
Revenue:129.87M20.41B4.66M184.57M30.42M
Gross Margin:0.880.530.820.96-0.92
EBITDA:46.29M5.74B-38.40M60.70M-40.66M
Operating Margin:0.340.20-8.390.29-1.38
Net Income:47.89M1.38B-69.92M66.73M-49.32M
EPS:1.411.62-0.711.14-1.25
P/E:18.3131.19N/A10.44N/A
PEG (5 yr expected):1.006.50N/A1.58N/A
P/S:7.262.1160.533.7215.73

Insys has the fastest revenue growth among these five companies. Subsys held a 37% market share of the entire TIRF products class as of March 2014.

Conclusion

There have been three different insiders buying Insys, and there have not been any insiders selling Insys during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Insys has an insider ownership of 0.90%.

The three insiders purchased their shares at prices ranging from $21.38 to $22.77. I believe Insys could be a good pick below $22.77 based on the intensive insider buying.
(click to enlarge)

(Source: Investor presentation)

Source: Insys Therapeutics: 3 Different Insiders Have Purchased Shares During The Last 30 Days