Opioid Maker Insys Plunges on Warning of Possible Bankruptcy
- Company warns that it may have to seek Chapter 11 protection
- Shares fall 74%; have lost most of value since their 2015 peak
Photographer: Pat Greenhouse/The Boston Globe via Getty Images
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Insys Therapeutics Inc. shares sank after the company warned that it may seek bankruptcy protection after bleeding tens of millions of dollars on legal settlements and defending former executives convicted of bribing doctors to prescribe a powerful opioid.
Insys said late Friday that it had $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.