RBC Cuts Insys Therapeutics (INSY) PT By 27%

RBC Capital analyst, Randall Stanicky, cut his target on INSYS Therapeutics (NASDAQ: INSY) to $32 from $44 after the 1Q16 preannouncement. No change to Outperform rating.

INSY closed -19% on a pre-announced 1Q2016 Subsys shortfall. Post model review and discussion with INSY management we are resetting our Subsys forecasts and taking our target to $32. Near-term focus on TIRF market stabilization will now increase and despite investor questions around ENDP weakness in sympathy, we see cross-read as limited.

The analyst believes that the key question is whether or not the TIRF market is stabilizing. It's important to note that this is not a "Subsys-specific issue" but rather erosion in the overall TIRF class which is down 11.9% year-to-date with 4-week rolling year-over-year decline closer to the high-teens in recent weeks (see exhibits 2-3). This is consistent with feedback from the analyst's 4/8 "doc day" where he heard about a much more challenging reimbursement environment for higher priced TIRF drugs that have been used heavily off-label.

For an analyst ratings summary and ratings history on INSYS Therapeutics click here. For more ratings news on INSYS Therapeutics click here.

Shares of INSYS Therapeutics closed at $14.24 yesterday.

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