Pink Eye 2008 on netflix

Pink Eye is set in a small town in upstate New York, at a prison-like, dilapidated insane asylum where secret drug testing has gone inexplicably wrong. Patients are dying in sick and twisted ways and those who survive are becoming raging, homicidal lunatics. It’s only a matter of time before all hell breaks loose and the patients begin to crave freedom to take their vengeance out on the world outside. When one patient does escape deformed, angry and far beyond insane, he brings death and terror to an unsuspecting town and everyone in it.