New Jersey Files Four-Count Lawsuit Against Insys on Opioid Drug – Stock Down 1.7%

New Jersey has filed a four-count lawsuit against Insys Therapeutics (INSY) charging that it engaged in a greed-driven campaign of consumer fraud and submission of false claims to health insurers to increase the market share for its powerful opioid-fentanyl drug Subsys, Attorney General Christopher Porrino said on Thursday.

Insys shares were down 1.5% in late trade.

The suit charged that, despite Subsys’ only having Food and Drug Administration (FDA) approval for the “narrow” purpose of treating breakthrough cancer pain in opioid-tolerant patients, Insys unlawfully directed its sales force to push Subsys for prescription to a broader patient population – patients suffering any type of chronic pain – and at higher doses.

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