Opioid manufacturer Insys files for bankruptcy after kickback probe

(Reuters) – Drugmaker Insys Therapeutics Inc filed for bankruptcy protection on Monday amid mounting expenses driven by a U.S. Justice Department probe into claims it paid doctors bribes to prescribe a powerful opioid medication.

The Chapter 11 bankruptcy filing marked a first for a drugmaker accused in lawsuits of helping fuel the deadly U.S. opioid endemic and came just days after Insys struck a $225 million settlement with the Justice Department.

The department is now Insys’ largest unsecured creditor due to Wednesday’s accord, which resulted in a subsidiary pleading guilty to fraud charges and the company entering into a deferred prosecution agreement.

The bankruptcy filing came after a federal jury in Boston in May found Insys founder John Kapoor and four other former executives guilty of engaging in a racketeering conspiracy centered on its fentanyl spray, Subsys.

Chandler, Arizona-based Insys said it filed for bankruptcy in U.S. Bankruptcy Court in the District of Delaware to facilitate a sale of its assets, including Subsys.

Insys listed $175.1 million in assets and $262.5 million in debt as of March 31. Shares of Insys fell 66% to 44 cents in premarket trading.

(Reuters) – Drugmaker Insys Therapeutics Inc filed for bankruptcy protection on Monday amid mounting expenses driven by a U.S. Justice Department probe into claims it paid doctors bribes to prescribe a powerful opioid medication.

Source: Reuters

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