Shares of Insys plunged on Wednesday after the scandal-plagued biotech firm disclosed that its auditor had raised doubts about its ability to continue as a concern.

In its opinion on Insys’ 10-K financial statements for the 2018 fiscal year, the auditor, BDO, noted that the company “has suffered losses and negative cash flows from operations and expects uncertainty in generating sufficient cash to meet its legal obligations and settlements and sustain its operations.”

“These factors raise substantial doubt about the company’s ability to continue as a going concern,” BDO said.

Insys sells Subsys, which administers the opioid fentanyl by a spray under the tongue, and Syndros, a liquid form of the synthetic cannabinoid dronabinol. As of Dec. 31, 2018, Insys said in the 10-K filing, it had an accumulated deficit of $336.1 million, negative cash flows from operating activities, and significant ongoing legal expenses.

“While we are pursuing a variety of funding sources and transactions that could raise capital, there can be no assurances that we will be successful in these efforts or will be able to resolve our liquidity issues or eliminate our operating losses,” Insys said.

On news of the filing, Insys’ shares dropped 25.2% to $4.25.

As Seeking Alpha reports, Insys has been attempting to shift from an opioid-based company to a drug delivery and cannabinoid-based company. But it has been dogged by legal troubles over its marketing of Subsys.

In January, Insys founder John Kapoor and three former company executives went to trial on charges of conspiring to bribe health practitioners to prescribe the drug. According to trial testimony, the marketing tactics included having regional sales director Sunrise Lee, a former exotic dancer, perform lap dances for doctors.

Former CEO Michael Babich pleaded guilty in the case in January.

Insys said in its 10-K that it had $104.1 million in cash and cash equivalents and investments at the end of last year but will require additional funding as it continues “to contend with existing litigation … and to fund other legal expenses related to our former employees.”

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