January 12, 2020 – Prosecutors say officials at Arizona-based Insys Therapeutics paid millions of dollars in bribes to doctors across the country so they would overprescribe Subsys, a fentanyl-based oral spray meant to ease intense pain suffered by cancer patients.
Insys Therapeutics also deployed other questionable marketing tactics, according to prosecutors. One sales executive, who prosecutors said used to be an exotic dancer, gave a physician a lap dance at a club. And the company misled insurers to get payment for the drug, which cost as much as $19,000 a month. Following a lengthy trial, Kapoor and four others were convicted last year of racketeering conspiracy. Two other defendants pleaded guilty.Shortly after, the company reached a $225 million settlement with the U.S. Department of Justice to end its criminal and civil probes. Insys Therapeutics has since filed for bankruptcy protection, and it’s not clear whether the company will fully pay what’s owed. The company has been approved to sell off Subsys and its other drugs for about $30 million, but the it maintains its assets, all told, are worth only $175 million.
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