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Insys Therapeutics returns to profit in 2nd qtr

PHOENIX (AP) -- Insys Therapeutics Inc. returned to a profit in its second quarter, bolstered by strong sales of cancer pain medication Subsys.

Its stock soared on Tuesday to its highest level since going public in May.

The specialty pharmaceutical company, which concentrates on products for cancer patients, earned $4.5 million, or 26 cents per share, for the three months ended June 30. That compares with a loss of $6.4 million, or 68 cents per share, in the prior-year period.

The number of outstanding shares leaped 86 percent since last year, which made the profit on a per-share basis far smaller than it would have been.

Excluding stock-based compensation expense and other items, earnings were 35 cents per share.

Revenue increased more than fivefold to $18.8 million from $3.5 million, with nearly all of the revenue coming from sales of its Subsys spray, which totaled $18.5 million in the quarter.

Analysts, on average, expected $15.1 million in revenue, according to FactSet.

Gross margin jumped to 86 percent from 34 percent a year ago, mostly because of the sharp rise in Subsys sales.

Shares of the Phoenix company surged $3.93, or 22 percent, to $21.81 in midday trading. The stock touched $23.49 earlier in the session, the highest point since its initial public offering in May. Insys attempted to go public in 2007 but filed to withdraw its IPO plans in 2008, citing poor market conditions.