Trying times for Insys Therapeutics (NASDAQ:INSY) have finally come to an end—but at a price. On Friday, the opioid manufacturer said it has agreed to pay a whopping $225 million to settle criminal investigations. And yet, the market doesn’t seem to mind: INSY stock is up more than 10%.
Here’s everything we know.
INSY Stock: Turning Itself Around
According to prosecutors, Insys Therapeutics allegedly “engaged in prolonged, illegal conduct,” as it marketed opioids, a powerful and addictive painkiller, during a time when the number of fatalities in the US caused by fentanyl, a type of opioid, increased more than 1,000% from 2011 to 2016.
Now, according to prosecutors, INSY will pay a $225 million settlement to resolve the criminal investigations. The company will pay a $2 million criminal fine and $28 million in forfeiture. It will also pay $195 million to settle allegations that it went against the federal False Claims Act.
While Andrew E. Lelling, US attorney for the District of Massachusetts, believes INSY agreeing to the settlement shows that the company is taking responsibility “for its role in fueling the opioid epidemic,” the company just believes it is doing what is in the best interest of its stakeholders.
“Insys Therapeutics believes that the agreements with the Department of Justice, Office of Inspector General of the Department of Health and Human Services (OIG), and certain U.S. Attorneys’ offices are in the best interests of the company and its stakeholders,” the company told ABC News.
Whatever the reason is behind Insys Therapeutics deciding to settle, it’s clear that INSY stock is benefiting from the decision.
According to Yahoo Finance, as of 1:25 PM EDT, INSY stock is trading at $1.29; this puts INSY up 12.84%.
What do you think about INSY agreeing to the $225 million settlement? Is Insys Therapeutics directly responsible for the opioid epidemic?
Let us know your thoughts in the comments below!
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