Insys Therapeutics filed for bankruptcy less than one week after agreeing to pay $225 million to settle a probe into alleged improper marketing of its opioid painkiller, according to Bloomberg.
The drugmaker filed for Chapter 11 bankruptcy protection in Delaware June 10. The court documents listed $175.1 million in assets and $262.5 million in liabilities.
The Chapter 11 protection will allow the company to keep operating while it comes up with a plan to pay the settlement.
"After conducting a thorough review of available strategic alternatives, we determined that a court-supervised sale process is the best course of action to maximize the value of our assets and address our legacy legal challenges in a fair and transparent manner," CEO Andrew Long told Bloomberg.
Insys is the first drugamaker to file for bankruptcy protection as a result of opioid litigation.
The bankruptcy filing comes a month after Insys founder John Kapoor and four former executives were convicted in a racketeering conspiracy to bribe physicians and boost prescriptions of its fentanyl spray, Subsys.