DoJ Investigation Resolution Awaited

Analyst Derek Archila said he continues to rate Insys at Perform, as he awaits clearance of the ongoing DoJ investigation, which he sees as a major overhang.

Though the analyst feels the stock may rally on the announcement, he sees risk to Subsys sales, which is expected to be impacted by a challenging reimbursement environment and continued volume declines for the overall transmucosal immediate-release fentanyl class.

According to Oppenheimer, the continued vacancy at the permanent CEO role could hinder long-term strategy execution, including unlocking value from the company's high-value cannabidiol pipeline.

Over-Hyped Syndros Sales?

Oppenheimer also believes the consensus sales estimates for Syndros are too high. The firm said it likes Insys' pipeline optionality, particularly in its cannabidiol programs. However, it recommends that investors can still capture meaningful upside with less risk, once the overhangs are resolved.

At last check, shares of Insys were up 7.77 percent at $11.10.