June
5, 2019 10:12 PM ET GABRIELLE EMANUEL
Insys Therapeutics, an opioid manufacturer, has agreed to pay
$225 million to settle the federal government's criminal and civil
investigations into the company's marketing practices. As part of the
settlement, Insys Therapeutics admitted to bribing doctors to prescribe its
opioid painkiller.
Last month, a federal jury in Boston found five top Insys
Therapeutics executives guilty of racketeering conspiracy for these same
practices. Now, the federal government is holding the company accountable.
In the agreement, the drugmaker admitted orchestrating a
nationwide scheme in which it set up a sham "speaker program."
Participating doctors were not paid to give speeches, but to write
prescriptions of Insys Therapeutics' fentanyl-based medication, Subsys. Often
the painkiller was prescribed to patients who did not need it.
Over the next five years, the company has agreed to close
federal monitoring and the federal government reserves the right to charge the
company in the future if there's a violation.
"For years, Insys engaged in prolonged, illegal conduct
that prioritized its profits over the health of the thousands of patients who
relied on it," said U.S. Attorney Andrew Lelling in a statement.
"Today, the company is being held responsible."
This settlement, as well as the criminal prosecution of Insys
executives, is part of the federal government's efforts to punish
pharmaceutical companies for their role in fueling the opioid epidemic.
"Today's settlement sends a strong message to
pharmaceutical manufacturers that the kinds of illegal conduct that we have
alleged in this case will not be tolerated," said Assistant Attorney
General Jody Hunt in a statement. "I want to assure the families and communities
ravaged by this epidemic that the Department of Justice will continue to act
forcefully to hold opioid manufacturers accountable for their actions."
The founder of Insys Therapeutics, John Kapoor, is among the
highest ranking pharmaceutical executives to be convicted amid the opioid
epidemic. Sentencing of the former billionaire is scheduled for September.
A spokesperson for Insys Therapeutics did not respond to a
request for comment regarding the settlement. However, in August 2018 the
company announced the settlement-in-principle and a spokesperson said in a
statement, "Insys Therapeutics in no way defends the past misconduct of
former employees."
The company has faced significant financial troubles that it
attributes to legal costs. Earlier this year, an Insys spokesperson said the
company may not survive.
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