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A box of fentanyl-based Subsys drug, manufactured by Insys Therapeutics Inc., is shown in an undated photograph provided by the US District Attorney's Office in the Southern District of Alabama.
US Attorney's Office in the Southern District of Alabama | Reuters
Insys Therapeutics shares escalated Monday morning after the company said it could be bankrupted because it could not pay court costs related to a Justice Department investigation into tactics selling the company to one of its popular opioids.
Insys reported $ 87.6 million in cash and cash equivalents at the end of March, which is lower than the Company's interim settlement of $ 150 million with the Department of Justice to settle accusations that she bribed doctors to prescribe her fentanyl drug unnecessarily. Subsys, intended to treat cancer patients.
Insys traded less than $ 1 a share on Monday, close to its historic low of 71 cents a share set during the financial crisis and down 75% from Friday's closing price of $ 3.60 per share. The company's shares peaked at $ 641.95 per share in 2000 and traded up to $ 45 per share in 2015, according to data compiled by FactSet.
The company said Friday that it could be forced to file for Chapter 11 if it could not sell its portfolio of opioid-related assets, including Subsys. He said investors would likely lose some or all of their investment if the company failed to finalize the sale, the company said in its first quarter earnings report.
Insys has stated that "the trading of our securities is highly speculative" insofar as it intends to file for bankruptcy.
In early May, a Boston jury convicted Insys founder John Kapoor and four former racketeering and other crimes officials in a fentanyl-related corruption case that federal prosecutors said contributed to the epidemic. opioids in the United States.
Prosecutors said Kapoor and other executives had bribed doctors to prescribe Subsys mainly through "mock" programs designed to increase brand awareness. Instead, prosecutors claimed that Insys used the programs to pay practitioners who prescribed too much of Subsys.
The company said legal fees related to the DOJ's investigation and other litigation, as well as recurring and increasing losses caused by the declining fentanyl immediate-release market (IRTFR), contributed its poor first quarter results.
Insys reported revenue of $ 7.6 million in the first quarter, down from $ 23.9 million in the same quarter last year. The loss of the company also widened to $ 123.8 million, after a loss of $ 20.4 million in the first quarter of 2018.
Insys Therapeutics did not immediately respond to CNBC's request for comment.
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