Insys Therapeutics has agreed to pay $225 million to settle allegations of illegally marketing an addictive fentanyl painkiller to physicians, the U.S. Justice Department announced June 5.
Prosecutors claim Insys used kickbacks and other illegal marketing practices to boost sales of Subsys, a fentanyl spray approved to treat pain in cancer patients.
As part of the agreement, Insys subsidiary Insys Pharma, will plead guilty to five counts of mail fraud, pay a $2 million fine, forfeit $28 million and pay $195 million to settle charges it defrauded the government under the False Claims Act.
"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 Assistant Attorney General Jody Hunt of the Justice Department. "Today, the company is being held responsible for that and for its role in fueling the opioid epidemic."
The settlement comes about one month after Insys founder John Kapoor and four other company executives were convicted of racketeering by a federal jury.