On Thursday, March 7th, pharmaceutical cannabis company Insys Therapeutics (NASDAQ:INSY) announced its Q4 financial results. Despite taking steps to become a leader in the pharmaceutical-grade cannabinoids sector, INSY saw a nearly 48% drop in net revenue in the quarter. And the market has not taken the news lightly. INSY stock is down nearly 5% today.
Insys Therapeutics: Q4 Results Impacting INSY Stock
According to Yahoo Finance, as of 3:38 PM on March 8th, INSY stock is down 4.05%, trading at $5.45. The decline comes twenty-four hours after the Phoenix, Arizona-based company released financial results. The results were for its Q4 and full year ended Dec. 31st, 2018.
Overall, the Insys Therapeutics Q4 report had several highlights in it, such as participating in the FDA Advisory Committee Meeting and expanding its partnership with University of California San Diego’s Center for Medicinal Cannabis Research (CMCR). However, the market seemed to dial in on one particular aspect of the report: the company's considerable drop in net revenue.
In the revised Q4 of 2017, Insys net revenue was $31.5 million. For the fourth quarter of 2018, however, the company's net revenue was $16.4 million. That means the company has experienced a decline of 47.9%. According to Insys, the TIRF market declines had an impact on its net revenue. More results from the Insys Therapeutics Q4 report can be found here.
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What Does the Future Hold for INSY?
Even though the company's Q4 top line is down 48%, CEO Saeed Motahari remained optimistic about the year and the road ahead.
“In 2018 we made progress in our transformation to further establish the company as a leader in the development of pharmaceutical-grade cannabinoids," explained Motahari. He also said the company made progress in moving beyond its legacy business. As for 2019, the CEO says it will be a year of delivering two new drug applications for two life-saving indications and a year of "continuing to reduce our operating expenses.”
Takeaway
How do you feel about the recent piece of Insys news? Are you optimistic about 2019? Are you focused on the drop in net revenue and INSY stock trading in the red because of it? Let us know in the comments below.
Featured image: Unsplash
