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

Jun. 1.14 | About: Insys Therapeutics, (INSY)

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.
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Insider buying during the last 30 days

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

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Theodore Stanley Director May 15-19 4,000 6,100 shares +190.5%
Patrick Fourteau Director May 15 7,500 105,000 shares +7.7%
Steven Meyer Director May 15 5,000 5,000 shares from 0 to 5,000
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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.

Month Insider buying / shares Insider selling / shares
May 2014 16,500 0
April 2014 0 0
March 2014 900 438,364
February 2014 0 0
January 2014 0 30,000
December 2013 500 27,428
November 2013 0 0
October 2013 0 0
September 2013 0 0
August 2013 6,000 0
July 2013 0 0
June 2013 1,250 0
May 2013 63,000 0
April 2013 0 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
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(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
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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.

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(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.
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(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.

Company INSY TEVA GALE DEPO BDSI
Market Cap: 884.48M 42.95B 271.46M 691.83M 463.59M
Employees: 202 44,945 60 291 24
Qtrly Rev Growth (yoy): 2.77 0.02 N/A 1.92 11.76
Revenue: 129.87M 20.41B 4.66M 184.57M 30.42M
Gross Margin: 0.88 0.53 0.82 0.96 -0.92
EBITDA: 46.29M 5.74B -38.40M 60.70M -40.66M
Operating Margin: 0.34 0.20 -8.39 0.29 -1.38
Net Income: 47.89M 1.38B -69.92M 66.73M -49.32M
EPS: 1.41 1.62 -0.71 1.14 -1.25
P/E: 18.31 31.19 N/A 10.44 N/A
PEG (5 yr expected): 1.00 6.50 N/A 1.58 N/A
P/S: 7.26 2.11 60.53 3.72 15.73
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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.
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(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in INSY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.