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Insys Agrees to Settle Opioid Kickback Probe for $150 Million

Sep 17, 2018

The Wall Street Journal reports Insys Therapeutics has agreed to pay $150 million to settle a Department of Justice civil and criminal probe into the company’s past sales and commercial practices related to its opioid painkiller Subsys.

Bloomberg News reports the settlement will be paid over five years and “could increase by as much as $75 million in contingency-based payments if certain unspecified events occur before the deal is finalized,” Bloomberg reports, citing a company statement.

Reuters reports that Insys “announced the tentative deal shortly before a former district sales manager pleaded guilty … to engaging in a scheme to pay medical practitioners kickbacks to prescribe the company’s opioid product Subsys.”

Fierce Pharma reports the Justice Department had alleged that Insys aggressively promoted Subsys for off-label uses. “Sales reps were taught to promote the drug’s off-label uses and to advise doctors to prescribe Subsys at dosages much higher than recommended” by the Food and Drug Administration.

From the news release of the American Association for Justice.

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