A “weed” drug sent the shares of Insys Therapeutics Inc. (NASDAQ:INSY) flying this Tuesday morning. INSY stock was up just over 23 percent during pre-trading. The stock spiked in the wake of a recent approval by the Food and Drug Association (FDA). The FDA just gave Insys’s Syndros the go-ahead.
Syndros is a dronabinol fluid that is administered orally. The product is also a synthetic cannabiniod and derivative of THC — which if found naturally in marijuana. Among its other uses, the drug will help revive the appetites of patients. These would range from fatigued hospital patients to those suffering from depression and anorexia. It has proven effects on chemotherapy patients too.
“We are very pleased to announce FDA approval of Syndros,” the company’s chief, John Kampoor, announced. “We believe that Syndros will be an important new treatment option for patients suffering with the devastating effects of… nausea and vomiting. The company stated that patients living with AIDS and its weight-loss effects can be treated with Syndros as well.
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The drug makes history as the first of its kind to be approved by the FDA. According to the company, it also offers conveniences that other liquid drugs do not. Its approval is a pharmaceutical game-changer and Insys hopes for a high market conversion and sustained expansion of the product.
“Syndros is the first and only FDA approved dronabinol solution for oral use,” Kampoor noted. “It is a liquid that is easy to swallow and allows the dosage to be titrated to clinical effect. Once Syndros is opened it does not need to be refrigerated for 28 days.”
The drug is now waiting to be scheduled by the federal DEA.
Insys (NASDAQ:INSY) will be pushing out a revolutionary drug into the market but it does not claim it to be a miracle treatment. The company has taken the time to disclose the known down sides of Syndros. People with heart conditions “may experience hypotension, hypertension, syncope, or tachycardia.” The drug is known to have some cognitive and other psychiatric effects as well.
Can Syndros succeed?
According to Insys, administraters of the drug are encouraged to weight the potential gains over the potential cons of Syndros. Those with a history of drug abuse are to monitored while on the drug. It probably should not be given to patients who suffer fro,m epileptic seizures as either.
Dronabinol already has a large demand in the market, with a potential for huge growth in the coming years. Around 9,500 of those who administer dronabinol make 70 percent of it prescribers. Insys Therapeutics (NASDAQ:INSY) hopes to switch a huge portion of this market onto Syndros to begin with.
Syndros is expected to hit the market within the next few months.