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Insys gets bankruptcy court green light to sell opioid Subsys to BTcP Pharma

Insys Therapeutics Inc. received approval from a bankruptcy court to sell its controversial opioid painkiller Subsys to BTcP Pharma LLC, Reuters reported.

BTcP Pharma agreed to only market the drug for use by patients with cancer — the original indication Subsys was approved for by the U.S. Food and Drug Administration.

The ruling was made by U.S. Bankruptcy Judge Kevin Gross in Wilmington, Del. The decision was the first time a bankruptcy court allowed a drugmaker to sell an opioid painkiller amid an epidemic that claims the lives of about 130 Americans daily.

Under the deal between Chandler, Ariz.-based Insys and BTcP Pharma, the former will transfer and assign to the latter all strengths, doses and formulations of Subsys worldwide and certain other related assets.

BTcP will also assume certain liabilities, including responsibility for all cure costs, and post-closing royalty payments payable to Insys based on sales of Subsys, fentanyl nasal spray Lazanda and certain other fentanyl products. BTcP will also pay certain royalties to Insys.

In June, Chandler, Ariz.-based Insys filed for bankruptcy after it agreed to pay a $225 million settlement related to investigations over unlawful marketing practices involving Subsys. The company also pleaded guilty to allegations that it paid doctors kickbacks and used other fraudulent marketing practices to boost the sales of its highly addictive painkiller.

In August, Insys announced a deal to sell its naloxone and epinephrine nasal spray products, related equipment and other assets to Hikma Pharmaceuticals PLC unit Hikma Pharmaceuticals USA Inc. for $17 million as part of its bankruptcy proceedings.