Insys Therapeutics To Write-Off $4.5 Million After 2nd Quarter Loss
A beleaguered Phoenix-based drug company is writing off $4.5 million, after several federal lawsuits nationwide have cost the company for misprescribing its products to patients.
Opioid drug-maker Insys Therapeutics announced the charge-off in connection with resolving a lawsuit by Illinois' attorney general. It's the latest decision, in a series against the company, claiming it deceptively marketed a fentanyl-based cancer pain drug for off-label uses.
The $4.5 million charge-off comes as the company's second-quarter revenue declined by 38 percent, mainly due the drop in prescriptions for Subsys, a synthetic opioid at the center of the lawsuit and federal probes.
Insys CEO Saeed Motahari says his main focus is resolving the investigations Insys faces, including those by the U.S. Department of Justice.
Year over year revenue dropped almost $27 million compared to the same quarter last year. The quarterly net loss is $8.2 million.
Federal charges have been filed against Insys and some former executives in several states, including Illinois, New Jersey, New York and others.