Insys Therapeutics Inc. (NASDAQ: INSY) watched its stock slide early Monday morning following the release of less-than-favorable revenue estimates. The company announced that its preliminary estimated revenues from Subsys (fentanyl sublingual spray) for the first quarter of 2016 will be in the range of $61 million to $62 million.

The consensus estimates for the first quarter called for total revenues of $86.07 million, while the same period from last year had $70.77 million.

These estimated revenues for the quarter, although preliminary, reflect a decline in demand, as Subsys prescription volumes were down, as well as a reduction in wholesale inventory levels. Insys estimates the decrease in wholesale channel inventory levels to be in the area of $7 million.

For some background: this is a specialty pharmaceutical company that develops and commercializes innovative drugs and novel drug delivery systems of therapeutic molecules that improve the quality of life of patients. Using proprietary sublingual spray technology and capabilities to develop pharmaceutical cannabinoids, Insys addresses the clinical shortcomings of existing commercial products.

Insys believes that heightened publicity surrounding the national opioid epidemic has resulted in a sensitivity by some health care providers to prescribe opioids. The company expects the Subsys prescription decline is close to stabilizing. At the current sales levels, Insys believes it will remain profitable and intends to pursue all of its research and development projects.

Prior to this move, the stock was down 38% year to date, while over the past 52 weeks the stock was down 39%.

Shares of Insys closed Friday up 1.4% at $17.66, with a consensus analyst price target of $35.75 and a 52-week trading range of $14.18 to $46.17. In early trading indications Monday, the stock was down 15% at $15.00.

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