Zogenix (ZGNX)

[Ando Financing Firm]

INSYS Therapeutic treated differently, Check out this link:

http://brontecapital.blogspot.com/2014/05/insys-therapeutics-drug-dealers-and.html

A blogger made a great point referring to zogenix (ZGNX).

"1. If the arrested doc prescribed $7M of Subsys through Medicare alone, who knows what's the total amount he prescribed, including private insurance.
2. Idoubt the company failed to notice the fact that one doctor was such a large prescriber, 6 times higher than the second highest prescriber for Medicare. Seems odd they let it slide, especially given the public/political pressure on ZGNX for Zohydro (another non-abuse deterrent schedule II opiate with not even 1% of the Subsys scripts).
3. The arrested doctor prescribed Subsys off-label. Given the scrutiny and fines Cephalon was exposed to for off-label use/marketing of Actiq, the company should have been much more cautious, at the very least, that such a large prescriber wasn't prescribing the drug off-label. Instead, no activity from the company.
4. The comp of the INSY sales force is a clear conflict of interest. Free samples are unforgivable. This is an addictive opiate, not a boner pill.
5. If one doctor was doing this with Subsys, how many others did it too. I would not be surprised to see them stop before inviting the FBI at their doorstep.
6. Why did the arrested doctor over prescribe Subsys? There are other fentanyl products out there. What was the Insys sales rep doing to incentivize this doctor's use for Subsys? And how many other doctors were targeted in a similar way?

At the minimum, INSY deserves even more of the kind of public/political pressure we saw with ZGNX. ZGNX does not hand out free samples, Zohydro sales are nearly not in the same ballpark, and their sales force is not incentivized by sales made. Based on what happened to the ZGNX stock, INSY needs to go much much lower from these levels. No cash and a major overhang over the company's marketing practices, and future revenues at a major threat don't equate to the current valuation."