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Opioid Maker Insys May File Bankruptcy as Cash Crunch Grows

  • Company says legal expenses tied to painkiller are mounting
  • It doesn’t have cash to complete $150 million U.S. settlement
Insys Manager Lap-Danced to Boost Opioid Sales, Jury Told (1)

Photographer: Kiyoshi Ota/Bloomberg

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Insys Therapeutics Inc. said it may seek bankruptcy protection after bleeding tens of millions of dollars on legal settlements and the costs of defending former executives convicted of bribing doctors to prescribe the company’s ultra-powerful opioid painkiller.

Insys said late Friday it has $87.6 million in cash and equivalents at the end of the first quarter, and $240.3 million in liabilities. It said it also may not be able to “complete” a $150 million settlement with the U.S. Justice Department over illegal marketing of its Subsys drug.