U.S. Intervenes in 5 Subsys Whistleblower Suits
The federal government has intervened in five whistleblower suits accusing Insys Therapeutics 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. alleges that Insys paid kickbacks to induce doctors and nurse practitioners to prescribe Subsys for their patients. The suit says 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 alleges 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.
The statement says that in addition to intervening and taking over responsibility for the five whistleblower cases, the government has separately pursued a number of criminal cases against Insys employees and Subsys prescribers, some of which have resulted in criminal convictions or guilty pleas, while others are still pending.