Insys Therapeutics Shares Plunge After Auditor Raises Viability Concerns

Insys Therapeutics INSY shares were crashing Wednesday after the company disclosed in its annual filing that the auditor's opinion on its audited financial statements include a paragraph stating concerns about the company's ability to continue.

The stock was halted on a circuit breaker just before 10 a.m. Wednesday before resuming trading. 

Why It’s Important

The news comes only days after a fourth-quarter miss that drove the stock down close to 20 percent.

The company has spent tens of millions of dollars on the defense of former executives facing criminal charges for allegedly bribing doctors, according to Bloomberg.

John Kapoor, the ex-CEO and billionaire founder of Insys, is on trial in Boston and could become the face of the opioid crisis. 

What’s Next

The company is in active negotiations with multiple parties to divest Subsys, a spray version of the synthetic opioid fentanyl, Bloomberg said.

Insys is also considering options such as spin-offs, strategic licensing and partnerships, joint ventures, divestitures, and restructuring.

If the company is unable to obtain funding, it may have to curtail product development, commercialization,and strategic plans. If it is unable to continue as a going concern, Insys may have to liquidate assets.

Insys shares were down 24.24 percent at $4.30 at the time of publication Wednesday. 

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Posted In: BloombergOpioidsNewsHealth CareMoversTrading IdeasGeneral

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