INSYS Therapeutics Reaches Agreement in Principle to Settle Department of Justice Investigation

INSYS Therapeutics (NASDAQ:INSY), a leader in the development, manufacture and commercialization of pharmaceutical cannabinoids and spray technology, announced today that it has reached an agreement in principle with the Department of Justice (DOJ) to settle the DOJ’s civil and criminal investigation into inappropriate sales and commercial practices by some former company employees. This agreement in principle is subject to the negotiation of final settlement documents with the government.

As quoted in the press release:

Consistent with previous public statements and disclosures, the terms of this agreement in principle call for INSYS to pay $150 million over five years, with the potential for contingency-based payments associated with certain events that, if they were to occur, management estimates would require additional payments ranging from $0 to $75 million. INSYS also expects that a final settlement would include other material non-financial terms and conditions which will also be subject to negotiation.

“This is a very important step for our company to move forward and continue our transformative efforts to foster a compliant and ethical culture and to execute against our well-differentiated product pipeline, which we believe can bring value to patients globally,” said Saeed Motahari, president and chief executive officer of INSYS Therapeutics.

Click here to read the full press release.