Insys Therapeutics Inc. pointed to new management and other changes in response to the latest lawsuit relating to sales practices for Subsys, an opioid painkiller.
New Jersey Attorney General Christopher Porrino filed a lawsuit yesterday, accusing the drugmaker of engaging in a "greed-driven campaign of consumer fraud" and submitting false claims to health insurers to boost sales of Subsys.
Insys argued that Subsys represented about 0.02% of the U.S. opioid prescriptions in 2016, which was consistent with the numbers in New Jersey and placed the company below the top 50 opioid makers in the country.
The company, which is already facing lawsuits from multiple states for its alleged sales malpractices, said it had taken major steps to prevent its past mistakes, including replacing 90% of the original sales force and commercial organization.
"It's also unfair to the company's current employees, most of whom are new to Insys and had no involvement in the past misdeeds," Insys added.
The company reiterated that it would continue to work with relevant authorities to resolve issues related to inappropriate actions taken by some of its former employees.
Insys previously agreed to pay $500,000 to the state of Massachusetts to settle allegations it illegally marketed Subsys and paid kickbacks to encourage the prescription of the drug. Elsewhere, it agreed to pay $4.5 million to the state of Illinois to resolve claims it deceptively marketed and sold Subsys.