Insys files for bankruptcy after $225 million charge

10 June 2019

Embattled opioid manufacturer Insys Therapeutics (Nasdaq: INSY) has filed for bankruptcy in the USA, shortly after agreeing to $225 million in charges with the US Department of Justice (DOJ), following allegations of marketing malpractices.

Shares in the firm dropped sharply following the news. While Insys intends to sell off its assets to meet its liabilities, it intends to continue trading, using cash reserves.

Chief executive Andrew Long said bankruptcy would “provide us with a forum to negotiate an equitable resolution with our creditors and represents the best opportunity for our people and our business.”

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