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Insys reaches $3.4M settlement in painkiller probe

INSYS Therapeutics Inc. reached a $2.9 million settlement with the state of New Hampshire for using "unfair and deceptive marketing practices" in promoting its brand name opioid painkiller Subsys.

The company will also pay $500,000 to the New Hampshire Charitable Foundation that will be used to prevent or remediate problems as a result of opioid drugs in New Hampshire.

The settlement is a result of an investigation by the New Hampshire Attorney General's Office, which concluded that the company paid a total of $44,000 to Christopher Clough, a physician assistant at PainCare, who prescribed and promoted the drug.

During 2013 and 2014, Clough wrote more than 760 Subsys prescriptions, representing 84% of the Subsys prescriptions written in New Hampshire during that period.

In 2014, the New Hampshire Board of Medicine brought a disciplinary action against Clough for his inappropriate prescribing practices.

While Insys denied any wrongdoing, it has agreed to not make any written or oral claim in promoting the drug that is false or that violates applicable laws.