As part of the deal, a subsidiary of the Arizona-based company will plead guilty to five counts of mail fraud and Insys itself will pay a $2 million fine, and $28 million in forfeiture.
Insys Therapeutics, a specialty pharmaceutical development and distribution company, said Monday (10) it had filed voluntary cases in the US Bankruptcy Court in the District of DE to facilitate the sale of substantially all of the company's assets and address the company's legacy legal liabilities.
INSYS has filed a number of customary motions seeking Court authorization to continue to support its business operations.
INSYS Theraputics says the filing will "facilitate the sale of substantially all of the company's assets and address the company's legacy legal liabilities".
Insys listed $175.1 million in assets and $262.5 million in debt as of March 31.
Shares from opioid maker Insys Therapeutics Inc. will be delisted from the Nasdaq on June 19, the company said in a government filing on Tuesday.
The original suit included other opioid manufacturers, including Purdue Pharma L.P., Endo Pharmaceuticals, Inc., Janssen Pharmaceuticals, Inc., Cephalon, Inc., Allergan plc, Mallinckrodt LLC, and related companies, as well as the major opioid distributors, AmerisourceBergen Drug Corporation, Cardinal Health, Inc., McKesson Corporation, and a related company.
A jury in Boston last month found Insys founder John Kapoor and four other former executives guilty of bribing doctors to prescribe Subsys - an FDA-approved drug for pain treatment in cancer patients - and other illegal sales practices.
With drug maker Insys Therapeutics (INSY) filing for Chapter 11 bankruptcy amid corruption charges on Monday, it may not be the only pharmaceutical company that is considering the move. The sublingual spray was developed as a pain management drug for adult cancer patients who are already tolerant to around-the-clock opioid therapy.
In March 2012, Insys began using "speaker programs", purportedly meant to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners.
Between 2012 and 2015, Insys allegedly paid doctors to prescribe its potent opioid medication and then lied to insurance companies to ensure that the expensive fentanyl-based painkiller would be covered. The company previously warned about a potential bankruptcy on May 10. It is unclear how much of the $195 million in the civil settlement that was reached last week the government will collect.
The Chapter 11 bankruptcy filing marked a first for a drugmaker accused in lawsuits of helping fuel the deadly USA opioid endemic and came just days after Insys struck a $225 million settlement with the Justice Department.