Insys says may seek bankruptcy protection,as opioid epidemic probe hacks up

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Insys says may seek bankruptcy protection,as opioid epidemic probe hacks up

On Friday, the 10th of May, an American Specialty Pharmaceutical Company based on Chandler, Arizona, Insys Therapeutics, known for its widely-used sublingual fentanyl spray, 100 times more potent than conventional opioid, said that, the company had been facing a cash crunch over legal costs linked to a US Justice Department’s probe on sales practice of the drugmaker, which might force the company to file for a bankruptcy protection.

Nevertheless, the company had been accused of bribing physicians to prescribe its fentanyl spray, which may have given rise to an opioid epidemic in US states amid a zero-tolerance policy of Trump Administration against opioid abuse.

In point of fact, analysts suggested that the company might have been seeking bankruptcy protection to avoid unveiling of further disdainful litigations, and had the company been granted a chapter 11 bankruptcy protection, it would be able to prevail US Justice Department from completing its settlement.

Followed by the latest round of opioid epidemic probe, Insys had been seeking options to divest its much-debated opioid product, Subsys, claimed to be responsible for a mass-scale opioid abuse across United States, however, a failure to divest its best-selling product would be disastrous for the drugmaker and the investors would likely to lose all of their investments.

Last August, Insys had reached a $150 million settlement deal with the US Justice Department to resolve an accusation that the drugmaker had been paying millions to physicians for prescribing their Subsys, a fentanyl containing spray, 100-times more potent than traditional opioid as beforementioned, however, this time, the drugmaker said in a statement, “It may be necessary for the company to file a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in order to implement a restructuring. Therefore, trading in our securities is highly speculative”.