Opioid Manufacturer Insys Therapeutics Files for Bankruptcy

Insys Therapeutics filed for Chapter 11 bankruptcy protection on June 10, just days after reaching a $225 million settlement with the U.S. Department of Justice.

In the settlement, the company admitted to bribing physicians to prescribe Subsys, its sublingual spray fentanyl formulation approved for patients with cancer. In addition, five of the company’s top leaders were found guilty of racketeering conspiracy by a federal jury.

“For years, Insys engaged in prolonged, illegal conduct that prioritized its profits over the health of the thousands of patients who relied on it,” said U.S. Attorney Andrew Lelling in a statement. “Today, the company is being held responsible.”

The $225 million settlement that Insys agreed to pay includes a $2 million fine, $28 million in forfeiture, and $195 million to settle allegations that it violated the federal False Claims Act. Court filings indicate a $195 million cap on the recovery amount, but Insys also must divest of Subsys.

The settlement is one of many efforts by the federal government to hold the pharmaceutical industry accountable for its role in the country’s devastating opioid epidemic.

Source: The New York Times, June 10, 2019.