Insys posts bigger loss
amid bribery probe of founder
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[November 02, 2017] (Reuters)
- Insys Therapeutics on Thursday posted a
quarterly loss that was bigger than analysts' expectations, as it faced
soft demand for its flagship opioid painkiller Subsys, which is at the
center of a federal probe at the company.
Insys's billionaire founder John Kapoor was arrested on charges that
he participated in a scheme to bribe doctors to prescribe Subsys.
Kapoor, also Insys's majority shareholder, resigned from the
company's board on Sunday.
Shares of the Arizona-based drugmaker are down 45 percent since the
beginning of the year.
The company said on Sunday it recorded $150 million as its "best
estimate of the minimum liability" to settle a U.S. Department of
Justice investigation into Subsys.
Subsys is an under-the-tongue spray for cancer patients that
contains fentanyl, an addictive opioid painkiller, and is at the
center of allegations against the company over its marketing
practices for the drug.
Insys reported a net loss of $166.3 million or $2.30 per share in
the third quarter ended Sept. 30, compared to a net income of $2.9
million or 4 cents per share, a year earlier.
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Excluding one-time items, Insys lost 21 cents per share. Analysts on
average had expected a loss of 16 cents, according to Thomson
Net revenue fell to $30.7 million from $57.8 million.
(Reporting by Manas Mishra in Bengaluru; Editing by Sai Sachin
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