Shares from opioid maker Insys Therapies Inc. will be delisted from the Nasdaq on June 19, the company stated in a federal government filing on Tuesday.
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The news follows the company’s Chapter 11 bankruptcy filing on Monday, which was submitted one week after it consented to pay $225 million to settle the federal government’s criminal and civil examinations into the company’s prohibited marketing scheme of its extremely addicting under-the-tongue fentanyl spray, Subsys.
It’s another blow to a business that was the very best carrying out going public of 2013.
As a result of Monday’s personal bankruptcy filing, “Nasdaq has actually determined that the Company’s securities will be delisted from Nasdaq. Appropriately, unless the Company requests an appeal of this decision, trading of the Business’s securities will be suspended at the opening of company on June 19, 2019,” Insys composed in a filing with the Securities and Exchange Commission (SEC) released on Tuesday.
” The Business does not mean to appeal the determination and, therefore, it is expected that the Business’s securities will be delisted,” Insys authorities composed. “The Company cautions that trading in the Business’s securities throughout the pendency of the Chapter 11 Cases is extremely speculative and presents substantial threats.”.
Monday’s insolvency filing marks the very first time an opioid producer has filed for Chapter11
In 2012, the Fda (FDA) approved Subsys to treat cancer clients. It’s off-label use to deal with discomfort made it a hit drug– and its founder, John Kapoor, a billionaire.
In May, a Boston jury found Kapoor and 4 other former executives guilty of taking part in a racketeering conspiracy to get physicians to oversubscribe Subsys.
The founded guilty previous Insys execs each face up to 20 years in prison. Kapoor is the first head of a drug company to face prison time for his role in the across the country opioid crisis, which kills 130 Americans a day, according to the Centers for Illness Control and Prevention
Fentanyl is a synthetic opioid thought about 50 to 100 times more effective than morphine.