Insys Therapeutics Agrees to $150 Million Fine with DoJ

Share

Insys Therapeutics has reached an agreement in principle with the Department of Justice to pay $150 million to settle a civil and criminal investigation into inappropriate sales and commercial practices by some former company employees. The agreement calls for Insys to pay the fine over five years, with the potential for contingency-based payments that could add another $75 million. The company says that the final settlement would include other material non-financial terms and conditions which will be subject to negotiation.

 

In May, the federal government intervened in five whistleblower suits accusing Insys of violating the False Claims Act in connection with marketing its opioid Subsys, a sublingual spray form of fentanyl. A Justice Department news release says Subsys was approved by FDA in 2012 for treating persistent breakthrough pain in adult cancer patients who are already receiving, and tolerant to, around-the-clock opioid therapy.


In the suits, the U.S. alleged that Insys paid kickbacks to induce doctors and nurse practitioners to prescribe Subsys for their patients. They said that many of the kickbacks took the form of speaker program payments for speeches to doctors that were shams, jobs for the prescribers’ relatives and friends, and lavish meals and entertainment. The government also alleged that Insys improperly encouraged doctors to prescribe Subsys for patients who did not have cancer, and that Insys employees lied to insurers about patients’ diagnoses to obtain reimbursement for Subsys prescriptions that had been written for Medicare and Tricare beneficiaries.

Read more