Insys Therapeutics Files for Bankruptcy

Opioid manufacturer Insys filed for Chapter 11 bankruptcy protection days after reaching a $225 million settlement with the U.S. Department of Justice following a federal government investigation that uncovered a conspiracy to illegally fuel sales of Subsys, a sub-lingual spray fentanyl formulation approved for patients with cancer. The investigation’s findings included illicit marketing practices, bribery of physicians, and defrauding of federal health care programs like Medicare.

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 must also divest of Subsys.

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