On Monday, the 10th of June 2019, the American drugmaker, Insys Therapeutics, a specialty pharmaceutical company based on Chandler, widely known for its sublingual fentanyl spray, a opioid painkiller 100 times more potent than morphine, had filed for chapter 11 bankruptcy protection in context of heightening expenses following a kickback probe of US Justice Department over allegations that the pharmaceutical company had bribed physicians to prescribe their powerful opioid medication, meanwhile undermining the abuse risks.
The Chapter 11 bankruptcy filed early morning on Monday (June 10th) had remarked the first such attempt by a drugmaker accused of fueling up an opioid epidemic across the United States. Besides, the bankruptcy filing came after a few days the Arizona-based drugmaker had settled a $225 million dispute with the US Justice Departments, while hundreds of such disputes had been hanging fires.
None the less, if the bankruptcy filing was granted, the pharmaceutical would be able to avert a stockpile of lawsuits filed against it claiming that the pharmaceutical had actively participated in an opioid epidemic in United States.
None the less, the bankruptcy filing came over the narratives of a lawsuit filed on May last year at a district court of Boston, accusing Insys CEO, John Capoor and four of his associates of conspiring and creating a cartel to increase sales of its fentanyl spray.
According to the bankruptcy filing, Insys had $175.1 million in assets and about $262.5 million in debts as of March 31st, while shares of Insys fell more than 66 percent to $0.44 following the reveal of its bankruptcy filing.