(Reuters) - Insys Therapeutics on Thursday posted a quarterly loss that was bigger than analysts' expectations, as it faced soft demand for its flagship opioid painkiller Subsys, which is at the center of a federal probe at the company.
Insys's billionaire founder John Kapoor was arrested on charges that he participated in a scheme to bribe doctors to prescribe Subsys. Kapoor, also Insys's majority shareholder, resigned from the company's board on Sunday.
Shares of the Arizona-based drugmaker are down 45 percent since the beginning of the year.
The company said on Sunday it recorded $150 million as its "best estimate of the minimum liability" to settle a U.S. Department of Justice investigation into Subsys.
Subsys is an under-the-tongue spray for cancer patients that contains fentanyl, an addictive opioid painkiller, and is at the center of allegations against the company over its marketing practices for the drug.
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Insys reported a net loss of $166.3 million or $2.30 per share in the third quarter ended Sept. 30, compared to a net income of $2.9 million or 4 cents per share, a year earlier.
Excluding one-time items, Insys lost 21 cents per share. Analysts on average had expected a loss of 16 cents, according to Thomson Reuters I/B/E/S.
Net revenue fell to $30.7 million from $57.8 million.
(Reporting by Manas Mishra in Bengaluru; Editing by Sai Sachin Ravikumar)
Disclaimer: No Business Standard Journalist was involved in creation of this content
