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Pharmaceuticals / Regulatory Affairs

Ex-Insys CEO to Plead Guilty of Role in Subsys Bribery Scheme

Jan. 4, 2019

Former Insys CEO Michael Babich agreed to plead guilty in connection with a kickback scheme involving the company’s Subsys fentanyl spray, the U.S. Attorney for the District of Massachusetts said in a court filing.

Babich is one of several Insys executives, including founder and majority owner John Kapoor and former head of sales Alec Burlakoff, charged in connection with a scheme to bribe doctors for prescribing Subsys, with the bribes concealed as speaking fees for talks the recipients never gave. Babich will plead guilty to one count of conspiracy and one count of mail fraud, according to U.S. Attorney for Massachusetts Andrew Lelling.

The bribes and kickbacks took multiple forms, according to the filing, including paying the salaries of practitioners’ office staff for administrative tasks they would otherwise have had to pay themselves.

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