Jefferies analyst David Steinberg said yesterday's drug indictments, which created a ~10% drop in INSYS Therapeutics (NASDAQ: INSY) stock intra-day, appears unrelated to the company.
Steinberg commented, "Two doctors were indicted for illegal opioid distribution – including Oxycontin, Opana and Dilaudid – among other illicit activities. Both physicians were highlighted as high prescribers of Subsys in a prior media report and the correlation caused concern – with the shares declining as much as ~10% intra-day Wednesday. Importantly, Subsys was not even listed in the document – only fentanyl was and there are many forms. This situation appears unrelated to INSY."
The firm reiterated a Buy rating and price target of $63 on IN