This Halloween, Insys Is Haunted By The Ghost Of Christmas Past

Jeanine Sieja
Written By
Jeanine Sieja
October 10, 2017

In the American medical drug and device industry, poor compliance practices never go away. They keep coming back to haunt you in newer and more alarming ways.

Take Insys Therapeutics, Inc.

In less than three years, it has gained infamy for using unethical means (read: violation of good pharmaceutical compliance practices) to sell its opiod, Subsys.

What unfurled was a media nightmare (for Insys) and a cautionary tale for everyone else.

Here’s a summary of the company’s legal ordeals:

  • Used off-label promotion and false claims for a drug only approved for cancer patients
  • Made over $2.7 million in general payments to HCPs and HCOs. (Insys paid $6.2 million to settle this lawsuit in 2015)
  • In December 2016, prosecutors in Boston charged Insys’ ex-Chief Executive Michael Babich and five other executives, with a scheme to bribe doctors to prescribe Subsys and defraud insurers.
  • Insys paid $8.95 million to settle investigations in New Hampshire, Oregon, and Illinois
  • Settled Massachusetts lawsuit with $500,000 in 2017

Is the nightmare over for Insys?

Not yet. Last week, New Jersey accused Insys Therapeutics Inc of engaging in a fraudulent scheme to boost sales for its opioid for un-approved patients and at higher doses.  It is also the recipient of similar lawsuits by the State of Arizona.

Jeanine Sieja

About the Author

Associated with the healthcare industry since 1997, Jeanine Seija’s core interests lie in business development in the pharmaceutical sector. She began her career in Marketing/Sales at Bristol-Myers Squibb, and held senior business development roles in Veritas Institute for Medical Education, WMedia Group/ExMI, Elsevier and Grey Healthcare Group. In 2014, she became the Director Business Development at Sensus-Group, after which she joined qordata as an Account Executive.