Insys Therapeutics Inc (NASDAQ:INSY) has announced that the US Patent and Trademark Office, has declined an inter partes review of US patents, which cover the fentanyl formulation of SUBSYS. A total number of five patents have been granted to the SUBSYS spray, providing it with a strong patent estate. However, Insys also faces securities class action lawsuits, filed by GPM and Rosen Law Firm, on behalf of the company’s investors.
The two law firms have stated that the investors who bought INSY shares between March 3, 2015 and January 25, 2016, should contact the law firms, to discuss their legal rights. Rosen Law Firm has stated that the company issued misleading statements and failed to provide complete disclosures about the company. The law firm also states that Insys was involved in the improper and illegal off-labeling market of SUBSYS. Added to this, it is also believed that some employees of the company were also involved in illegal kickback schemes, aimed at increasing the prescriptions of SUBSYS.
The lawsuit claims that the financial statements of Insys, to the point until the said details surfaced, had been misleading the investors. As such, these investors suffered financial damages, after the disclosure. Investors have been told to move to court, by April 4, 2016, as the lead plaintiffs for the action.
Dr. John N. Kapoor, the CEO of Insys, stated that SUBSYS is one of a kind sublingual spray, for the treatment of cancer pain. He further added that the company is committed to defend its intellectual properties and ensure the creation of long-term shareholder value. Furthermore, the FDA is expected to announce a decision on Marinol, the company’s drug, derived from marijuana, for the treatment of anorexia, by April 1. If approved, the drug would be sold as a suspension, under the name Syndros.
Insys Therapeutics Inc (NASDAQ:INSY) remained static at its share price of $16, during the March 10 session. The stock had a trade volume of 0.00, during the session.