Why Insys Therapeutics Inc Popped Again
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of pharmaceutical company Insys Therapeutics Inc climbed by double-digits for the second straight day after the company posted strong second-quarter results.
So what: The stock soared yesterday on Insys' market-topping quarter -- profit of $4.5 million on revenue that jumped more than fivefold -- so the extended rally suggests that investors are quickly catching on. In fact, J.P. Morgan raised its price target from $18 to $27 on continued strong sales of Insys' lead product, cancer pain management drug Subsys, giving investors plenty of comfort that there's still some room to run.
Now what: Don't expect the momentum to slow anytime soon. "We are excited to have achieved our second quarter of profitability and look forward to building value for shareholders as we continue to execute on our marketing plan," said President and CEO Michael Babich. "The continued growth we have achieved allows us to accelerate reinvestment in both our research and development and sales and marketing efforts." So while the stock is certainly too hot and speculative for average investors, Subsys' multiyear growth potential might be something for biotech-savvy Fools to consider.
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The article Why Insys Therapeutics Inc Popped Again originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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