The legal fallout for the opioid epidemic has sunk another pharma company.
On Monday, Insys Pharmaceuticals revealed that it will likely have to file for bankruptcy due to the cost of settling a Department of Justice investigation into its selling practices for an opioid medication.
Earlier this month, a federal jury found the company’s former CEO and other top executives guilty of racketeering charges related to how it sold a fentanyl product called Subsys. The verdict marked the first-ever conviction of a drug company CEO in the government’s ongoing mission to prosecute pharm executives who were instrumental in over-selling prescription painkillers.
Now Insys is facing a $150 million settlement with the DOJ over claims that it bribed doctors to prescribe Subsys, but the company says it only has about $87.6 million in cash on hand. Insys also warned investors that they could lose their investments if the company cannot successfully sell its portfolio of opioid-related assets.
As of Monday morning, news of a potential bankruptcy filing sent shares for Insys plummeting by about 70 percent.
Read the full CNBC report.
