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Insys says it may be forced to file for bankruptcy due to litigation cash crunch
Source: Reuters
BUSINESS NEWS MAY 11, 2019 / 12:24 AM / UPDATED 4 HOURS AGO
Insys says it may be forced to file for bankruptcy due to litigation cash crunch
(Reuters) - Insys Therapeutics Inc said on Friday that a cash crunch resulting from legal costs related to a U.S. Justice Department probe into sales practices for the company’s powerful opioid medication and other litigation may lead the company to file for bankruptcy and prevent it from completing its settlement deal with the Justice Department.
Insys, which has been exploring strategic options and is in talks to divest its opioid product Subsys, said it was likely that investors will lose all or a part of their investments if the company is not able to sell its assets at the value they are booked in its audited financial statements.
Last August, Insys reached a tentative deal to pay at least $150 million to resolve a Department of Justice investigation into claims that the drugmaker paid doctors kickbacks to prescribe Subsys, an under-the-tongue spray that contains fentanyl, an opioid 100 times stronger than morphine.
The Arizona-based company said it was uncertain about its ability to fulfill demands made by the DoJ, which includes the execution of a security agreement related to the assets of the company to collateralize payments under the settlement.
-snip-
Insys says it may be forced to file for bankruptcy due to litigation cash crunch
(Reuters) - Insys Therapeutics Inc said on Friday that a cash crunch resulting from legal costs related to a U.S. Justice Department probe into sales practices for the company’s powerful opioid medication and other litigation may lead the company to file for bankruptcy and prevent it from completing its settlement deal with the Justice Department.
Insys, which has been exploring strategic options and is in talks to divest its opioid product Subsys, said it was likely that investors will lose all or a part of their investments if the company is not able to sell its assets at the value they are booked in its audited financial statements.
Last August, Insys reached a tentative deal to pay at least $150 million to resolve a Department of Justice investigation into claims that the drugmaker paid doctors kickbacks to prescribe Subsys, an under-the-tongue spray that contains fentanyl, an opioid 100 times stronger than morphine.
The Arizona-based company said it was uncertain about its ability to fulfill demands made by the DoJ, which includes the execution of a security agreement related to the assets of the company to collateralize payments under the settlement.
-snip-
Read more: https://www.reuters.com/article/us-insys-bankruptcy/insys-says-it-may-be-forced-to-file-for-bankruptcy-due-to-litigation-cash-crunch-idUSKCN1SH04D