The Novel York Times Pile Onto Insys

The New York Times picks upward where this weblog leaves off, piling onto Insys Therapeutics. To quote:

Interviews amongst several onetime Insys sales representatives advise the company, based inwards Chandler, Ariz., has aggressively marketed the painkiller, including to physicians who did non process many cancer patients together with past times paying its sales strength higher commissions for selling higher doses of the drug. 

Under F.D.A. rules, manufacturers may marketplace prescription drugs entirely for approved uses. But doctors may prescribe drugs equally they come across fit. Over the end decade, pharmaceutical companies bring paid billions of dollars to settle claims that they encouraged doctors to piece of job drugs for nonapproved treatments, or so-called off-label uses, to growth sales together with profits. 

Drug-safety experts said the make of medical professionals who appeared to move prescribing Subsys was troubling, peculiarly given concerns nearly the widespread piece of job — together with abuse — of narcotic painkillers. In December, Insys disclosed that it had received a subpoena from the federal wellness department’s Office of the Inspector General for documents related to its sales together with marketing practices. The fellowship has said it is cooperating amongst the investigation.

Marketing the drug off-label is a law-breaking together with equally the drug has nigh substitutes it volition non move much if whatever loss to consumers if this fellowship were closed.

The Feds are clearly interested having indicted a Dr. who was allegedly prescribing large quantities of the drug off-label.

Can individual delight explicate to me why this fellowship is trading at 21 times historic earnings together with almost seven times historic sales? Because I don't quite dice it.





John