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Insys to pay $150M to settle DOJ probe over opioid marketing


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Insys to pay $150M to settle DOJ probe over opioid marketing

Insys Therapeutics Inc. agreed to pay $150 million as part of an agreement to settle a U.S. federal probe in the sales practices of its former employees.

The U.S. Justice Department had alleged that the Chandler, Ariz.-based company bribed doctors and nurses to prescribe its opioid painkiller Subsys, which helped fuel the opioid crisis in the country.

In May, the DOJ joined five lawsuits against Insys.

Besides the payment of $150 million over five years, the agreement may also involve contingency-based payments that require additional payments of up to $75 million.

The agreement in principle is subject to negotiation with the government and may also include other material nonfinancial terms and conditions.

The company had already included a $150 million sum as an accrual for the DOJ Investigation in 2017. The DOJ, however, had not accepted the offer till now.

Insys founder and former CEO John Kapoor resigned from the company's board in October 2017 after being arrested on charges of leading a conspiracy to bribe doctors to prescribe Subsys and to defraud insurers.

Kapoor has said he is confident that he has committed no crimes.