Insys Files for Personal Bankruptcy After Settling Case for $225 Million
June 12, 2019 by erfa5t8
Arizona-based Insys Therapeutics applied for insolvency on June 10 after accepting a massive $225 million settlement with the Justice Department for trying to bribe medical professionals to recommend Subsys, a sprayable form of fentanyl. The business reached to work with an ex-stripper, Daybreak Lee, to “attract” doctors to recommend the exceptionally dangerous opioid-based drug.
The FDA approved Subsys in 2012 for cancer patients to alleviate their discomfort, according to the New york city Post. Although Subsys acquired FDA approval, Insys desired doctors to recommend “off-label prescriptions” for the medication.
Holly Brown, a former sales representative for Insys, stated, “She was resting on [the doctor's] lap, sort of bouncing around, and he had his hands all over her, sort of wrongly.”
Insys has no strategies of stopping operations however remains in the midst of selling company assets to survive. The sale of properties will be court-supervised.
Andrew Long, a Chief Executive at Insys, stated, “After conducting a comprehensive evaluation of offered strategic alternatives, we identified that a court-supervised sale procedure is the very best strategy to maximize the value of our properties and address our tradition legal obstacles in a fair and transparent way.”
In 2016, Insys donated $500,000 to assist defeat Prop 205, the leisure cannabis effort in Arizona. Then, in 2017, Insys received FDA approval to disperse Syndros, an artificial form of THC that the business privately developed.
AP Photo/Steven Senne
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