Drug Pipeline
Insys believes its pipeline of new drug products will drive its profitability in the future. Its buprenorphine sublingual spray has completed phase III drug testing and the company has submitted a new drug application (“NDA”) to the FDA. Buprenorphine sublingual spray is designed to treat dependence/addiction to opioids and could be promising given the number of people addicted to opioids.
Over 25 million Americans suffer from opioid addiction several die each day. Vivitrol from Alkermes (NASDAQ:ALKS) and Suboxone from Indivior (OTCPK:INVVY) (OTCPK:IZQVF) are two drugs currently competing to treat opioid addiction. The U.S. represents an estimated 80% of the world’s opioid users, so the market opportunity could be substantial.
Conclusion
Insys’s liquidity could potentially keep it afloat long enough for its drug pipeline to bear fruit. I rate INSY a hold.
