Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Insys Therapeutics Inc    INSY

INSYS THERAPEUTICS INC (INSY)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Insys Therapeutics : Former Insys CEO pleads guilty to opioid kickback scheme

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/09/2019 | 04:36pm EST
Former chief executive of Insys Therapeutics Inc Michael Babich leaves the federal courthouse after pleading guilty in Boston

BOSTON (Reuters) - The former chief executive of Insys Therapeutics Inc pleaded guilty on Wednesday to participating in a nationwide scheme to bribe doctors to prescribe an addictive opioid medication and has agreed to become a government witness.

Michael Babich, who resigned as the Arizona-based drugmaker's CEO in 2015, pleaded guilty in federal court in Boston to conspiracy and mail fraud charges after entering into a cooperation deal with prosecutors.

His plea comes less than three weeks before five former Insys executives and managers including John Kapoor, its onetime billionaire founder and former chairman, face trial after being charged with participating in the scheme.

Babich, 42, faces up to 25 years in prison. But the Arizona resident could receive a more lenient sentence by testifying at Kapoor's Jan. 28 trial. Assistant U.S. Attorney Fred Wyshak in court said Babich committed his crimes at Kapoor's direction.

Kapoor and his co-defendants have pleaded not guilty to racketeering conspiracy. Beth Wilkinson, Kapoor's lawyer, had no comment after attending Wednesday's hearing.

Prosecutors allege that from 2012 to 2015, Kapoor, Babich and others conspired to pay doctors bribes in exchange for prescribing Subsys, an under-the-tongue fentanyl spray for managing severe pain in cancer patients.

Fentanyl is an opioid 100 times stronger than morphine.

Prosecutors said Insys paid doctors kickbacks in the form of fees to participate in speaker programs ostensibly meant to educate medical professionals about Subsys that were actually sham events.

Prior to working at Insys, Babich had worked at Kapoor's venture capital firm.

Insys in August said it had agreed to pay at least $150 million as part of a settlement with the U.S. Justice Department. The company has said it has taken steps to ensure it operates legally going forward.

Prosecutors called the case a major example of their efforts to combat the nation's opioid epidemic. According to the U.S. Centers for Disease Control and Prevention, opioids were involved in a record 47,600 overdose deaths in 2017.

Babich's plea comes after Alec Burlakoff, Insys' former vice president of sales, pleaded guilty in November and agreed to testify as a government witness.

Babich is married to a former Insys sales representative, Natalie Babich, who in 2017 pleaded guilty to conspiring to pay kickbacks.

She testified last month at the trial of Christopher Clough, a former physician assistant in New Hampshire accused of accepting kickbacks from Insys. A federal jury in Concord, New Hampshire, convicted Clough on Dec. 18.

(Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Bill Berkrot)

By Nate Raymond

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on INSYS THERAPEUTICS INC
01/10INSYS THERAPEUTICS : Announces Results of Dose-Finding PK Study for Epinephrine ..
AQ
01/09INSYS THERAPEUTICS : Former Insys CEO pleads guilty to opioid kickback scheme
RE
01/09INSYS Therapeutics Announces Results of Dose-Finding PK Study for Epinephrine..
GL
01/03INSYS Therapeutics to Present at 37th Annual J.P. Morgan Healthcare Conferenc..
GL
2018INSYS THERAPEUTICS : Ex-Insys CEO to plead guilty to opioid kickback scheme
RE
2018INSYS THERAPEUTICS : New Hampshire physician assistant guilty of Insys opioid ki..
RE
2018INSYS THERAPEUTICS : Announces Participation at FDA Advisory Committee Meeting A..
AQ
2018INSYS THERAPEUTICS : Provides Update on Strategic Alterative Review Process and ..
AQ
2018INSYS THERAPEUTICS : Provides Update on Strategic Alterative Review Process and ..
AQ
2018INSYS THERAPEUTICS : Presents New Clinical Data from Long-Term Safety Study of C..
AQ
More news
Financials ($)
Sales 2018 83,7 M
EBIT 2018 -91,0 M
Net income 2018 -105 M
Debt 2018 -
Yield 2018 -
P/E ratio 2018 -
P/E ratio 2019
Capi. / Sales 2018 3,82x
Capi. / Sales 2019 4,04x
Capitalization 320 M
Chart INSYS THERAPEUTICS INC
Duration : Period :
Insys Therapeutics Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends INSYS THERAPEUTICS INC
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 5
Average target price 8,40 $
Spread / Average Target 95%
EPS Revisions
Managers
NameTitle
Saeed Motahari President, Chief Executive Officer & Director
Steven J. Meyer Chairman
Andrew G. Long CFO & Principal Accounting Officer
Venkat Reddy Goskonda Vice President-Research & Development
Ahmed Elkashef Vice President-Clinical Development
Sector and Competitors
1st jan.Capitalization (M$)
INSYS THERAPEUTICS INC23.14%320
GILEAD SCIENCES8.14%87 500
VERTEX PHARMACEUTICALS12.65%47 572
REGENERON PHARMACEUTICALS8.31%43 012
GENMAB-2.86%9 732
NEUROCRINE BIOSCIENCES, INC.23.20%7 978