Insys CEO Resigns Amid Investigation of Opioid Drug Subsys
A week after Insys Therapeutics received FDA fast track designation for its naloxone sublingual spray for treating opioid overdose, company President and CEO Michael L. Babich resigned amid an investigation over sales of its opioid drug Subsys.
He will be succeeded by John Kapoor, chairman of the company’s board of directors. Kapoor will keep his position as chairman. The company’s statement offered no explanation for Babich’s departure.
Insys was handed subpoenas by HHS and the U.S. Attorney's Office for the District of Massachusetts in 2013 and 2014, respectively, requesting documents regarding the commercialization of Subsys. Sales of the opioid pain medicine, which account for nearly all the company’s revenue, increased by 57 percent in the third quarter of 2015.