Insys Settles Subsys Charges for $225 Million
The Justice Department says Insys Therapeutics is settling separate civil and criminal investigations into illegal promotion of its Subsys opioid painkiller with a payment of $225 million. A department news release says the company will plead guilty to five counts of mail fraud and pay a $2 million fine and $28 million in forfeiture, as well as paying $195 million to resolve civil False Claims Act charges.
Both the criminal and civil investigations stemmed, the government says, from the company’s payment of kickbacks and other unlawful marketing practices in connection with its marketing of Subsys, a sublingual fentanyl spray indicated to treat persistent breakthrough pain in adult cancer patients who are already receiving, and are tolerant to, around-the-clock opioid therapy.
A government charging document says that from 8/2012 to 6/2015, Insys used “speaker programs” purportedly to increase brand awareness but actually to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions to patients and increased dosage in the prescriptions.
As part of the criminal resolution, the Justice Department says, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys.
In May, five former Insys executives were convicted after trial of racketeering conspiracy in connection with Subsys marketing, bringing to eight the number of Insys executives convicted for crimes relating to illegal Subsys marketing.
The company also is entering into a five-year corporate integrity agreement with the HHS inspector general. The government says it decided not to seek exclusion of Insys from federal healthcare programs at this time because of its extensive cooperation in the prosecution of culpable individuals and agreement to enhanced corporate integrity agreement requirements.
The civil allegations originated in five whistleblower suits. The whistleblowers will receive a share of the $195 million civil settlement.