INSYS Therapeutics Inc (NASDAQ: INSY) is having a relatively strong start to the trading session this morning after the company announced that it has reached an agreement with the Department of Justice surrounding a recent civil and criminal investigation. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The settlement;
- what we’re seeing from INSY as a result; and
- what we’ll be watching with regard to the stock ahead.
INSY Announces D.O.J. Settlement
As mentioned above, INSYS Therapeutics is having an incredibly strong start to the trading session this morning after reaching an agreement with the Department of Justice. The agreement surrounds the civil and criminal investigation into inappropriate sales and commercial practices by some former company employees. In the release, INSY said that the agreement in principle is subject to the negotiation of final settlement documents with the government.
According to the agreement, the company will pay $150 million over the course of five years, with the potential for contingency-based payments associated with certain events that, if they were to occur, management estimates would require additional payments ranging from $0 to $75 million. The company said that it expects for the final settlement to include other material non-financial terms and conditions which will also be subject to negotiation. In a statement, Saeed Motahari, President and CEO at INSY, had the following to offer:
This is a very important step for our company to move forward and continue our transformative efforts to foster a compliant and ethical culture and to execute against our well-differentiated product pipeline, which we believe can bring value to patients globally.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In this particular case, the news proved to be overwhelmingly positive. After all, the Department of Justice investigation is something that has been hanging over INSYS Therapeutics and likely hindering growth. So, it comes as no surprise to see that excited investors are pushing the stock toward the top in the marke this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:48), INSY is trading at $7.47 per share after a gain of $0.82 per share or 12.33% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on INSY. In particular, we’re interested in following the story surrounding the finalization of the D.O.J. settlement and excited to see the company move past this issue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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