Shares of Insys Therapeutics
INSY have plummeted 51.4%, after it filed for bankruptcy protection
under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court in the District of Delaware.
Insys Therapeutics, Inc.
Insys Therapeutics, Inc. price | Insys
Therapeutics, Inc. Quote
The protection will enable the company to
facilitate the sale of substantially all of its assets and address
its legacy legal liabilities.
Insys has been embroiled in various litigations
in recent times amid allegations of fuelling the ongoing opioid
endemic in the United States. The company has also been accused of
bribing doctors to prescribe its lead drug, Subsys, to patients.
Subsys is a proprietary sublingual fentanyl spray
indicated for the management of breakthrough cancer pain in
patients aged 18 years or older, who are already receiving and are
tolerant to around-the-clock opioid therapy for their underlying
persistent cancer pain.
The company has experienced recurring and
increasing losses from operations over the last 18 months due to
significant declines in the Transmucosal immediate-release fentanyl
(TIRF) market, and considerable legal expenses resulting from the
DOJ Investigation and other significant litigation matters. The
company had earlier stated of a possible bankruptcy given its
limited cash balance.
This month, Insys signed a settlement with the
United States, formalizing its previously announced settlement
relating to certain civil statutory claims. As part of this
agreement, the company agreed to pay $195 million.
Meanwhile, Insys intends to utilize existing cash
in hand and operating cash flows to support its continued
operations, including payment of all employee wages and benefits
without interruption, and continuing programs offered to
As of Mar 31, 2019, the company recorded assets
of $172.6 million, and $262.3 million in liabilities.
Zacks Rank & Stocks to Consider
Insys currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Bristol-Myers Squibb Co. BMY, Roche
RHHBY and Celgene Corp. CELG. While Bristol-Myers sports a Zacks
Rank #1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy).
You can see the complete list of todayâs Zacks #1 Rank
Bristol-Myersâ earnings per share estimates have
increased from $4.79 to $5.03 for 2020 in the past 60 days.
Rocheâs earnings per share estimates have
increased from $2.35 to $2.40 for 2019 in the past 60 days.
Celgeneâs earnings estimates have moved up by a
cent to $10.72 over the past 60 days.
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Company (BMY) : Free Stock Analysis Report
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Insys Therapeutics, Inc.
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