Opioid Drugmaker Insys Therapeutics files for bankruptcy
Drugmaker Insys Therapeutics Inc. filed for Chapter 11 bankruptcy protection on Monday, about a week after agreeing to pay $ 225 million to settle a US probe into bribes, paid it to doctors to prescribe a powerful opioid medication .
Filing in the US The bankruptcy court in the Delaware district made Insys the first medical manufacturer to go bankrupt due to legal expenses incurred by accusation of liability in the lethal US opioid epidemic. The company's shares fell almost 60 percent to 52 cents in premarket trading.
Insys said it intends to continue operating its business while pursuing the sale of substantially all of its assets under a court-operated sales process.
Chandler, Arizona-based Insys, who produced fentanyl spray Subsys, agreed on June 5 to settle the Justice Department center in the United States and have a fraudulent subsidiary.
A month earlier, a federal jury found in Boston Insys founder John Kapoor and four other former leaders and leaders guilty of engaging in a huge racketeering conspiracy.
Subsys is a sub-heavy spray that the US Food and Drug Administration only approved in 201[ads1]2 to treat pain in cancer patients. The major component, fentanyl, is an opioid 100 times stronger than morphine.
Prosecutors claimed that while Kapoor served as Insys & # 39; leader, the company paid doctors and other physicians from 2012 to 2015 instead of prescribing Subsys to their patients, often to those who did not have cancer.
The insys did so by paying medical doctors to act as loudspeakers at sham events that apparently were meant to educate clinicians about Subsys.
Prosecutors said the scheme helped increase sales of Subsys, whose net revenue grew from $ 8.6 million in 2012 to $ 329 million in 2015. Insys was released in 2013 with what became the best performing public offering for that year.
Prosecution for the Justice Department resulted in more people being charged, including Kapoor, the company's majority shareholder, in October 2017, the same day US President Donald Trump declared the opioid crisis a health price.
Opioids were involved in a record 47,600 US overdose deaths in 2017, US disease confirmation centers and prevention have said.
The survey took a toll on Insys and sale of Subsys declined. In May, Insys said it only had $ 87.6 million in cash at the end of the first quarter and $ 240.3 million in debt.
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The company said on Monday It intends to pay the suppliers and suppliers in full for goods and services delivered after the filing date June 10.
Other opioids produce facial issues by state and local authorities seeking to hold them responsible for the epidemic, including the OxyContin manufacturer Purdue Pharma. Purdue has also considered filing for bankruptcy to address potentially significant commitments from approximately 2,000 lawsuits, sources told Reuters in March.
(Reporting of Nate Raymond in Boston; Further Reporting by Manas Mishra and Tamara Mathias in Bengaluru; Editing by David Gregorio and Anil D & # 39; Silva)
