UPDATE: Oppenheimer Initiates Coverage on Insys Therapeutics with Outperform Rating, $23 PT on Multiple Positive Factors

In a report published Wednesday, Oppenheimer analyst Rohit Vanjani initiated coverage on

with an Outperform rating and $23.00 price target. In the report, Oppenheimer noted, “We are initiating coverage of Insys Therapeutics with an Outperform rating and $23 price target. The shares of Insys are up roughly ~66% since the IPO close date on 5/7/13 (versus the S&P 500 up 3%), largely on the back of Subsys' stellar launch. We believe Subsys, with its faster onset of action and more convenient administration, can continue to take share from the competitive products in the Breakthrough Cancer Pain market, Actiq and Fentora. Insys' other key opportunity lies in what is essentially a liquid formulation of marijuana. The company will file an NDA for Oral Dronabinol in 2H13. Based on improved pharmacokinetc data, we expect the oral formulation will capture share of the chemotherapy-induced nausea and vomiting market.” Insys Therapeutics closed on Tuesday at $16.05.