Insys bankruptcy plan falls short on money owed

Insys Therapeutics, the first drugmaker to declare bankruptcy due to opioid-related litigation, raised far less money from asset sales than needed to pay the U.S. Justice Department and other creditors what it owes them, according to The Wall Street Journal.

Insys currently owes the Justice Department $225 million, as agreed upon in its settlement in June. The company fell short of raising enough money to pay that debt and others "by a wide margin," according to the WSJ.

The Justice Department will have to share the money Insys did raise with other government bodies and people that sued the company for injuries or damages from the opioid epidemic.

In addition to the $225 million owed to the Justice Department, it is estimated that Insys owes about $600 million to states, municipalities and Native American tribes and another $300 million to insurers and hospitals affected by the improper marketing of Insys.

Some additional money earmarked for creditors will come from the continued sale of Subsys, Insys' fentanyl spray that was its main profitmaker and was sold in a deal slated to get court approval this week, according to the WSJ.

While there are some assets that remain to be sold, the company told creditors there is a risk that they won't make money off of some of its remaining assets, such as unsold drug rights.

Read the full report here.

More articles on opioids:

Ineffective drug rehab often costs families thousands
These 3 factors will define nurses' roles in fighting the opioid epidemic
Penn Medicine center blends radiology, psychiatry for precision approach to opioid treatment

 

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months