Billionaire founder of opioid firm guilty of bribing

New Post Public Reply Private Reply Replies (0) Message Board
jrt03
286
Billionaire founder of opioid firm guilty of bribing doctors to prescribe drug

Chris McGreal
First published on Thu 2 May 2019 15.04 EDT
John Kapoor, 75, also guilty of defrauding insurance companies
Prosecutors say fentanyl drug Subsys fuelled opioid epidemic
John Kapoor, right, over saw Insys’s marketing strategy of hiring doctors as seminar speakers as cover to pay them more than $1m to prescribe high doses of Subsys.
The head of a leading drug manufacturer has been found guilty of bribing doctors to prescribe a dangerous painkiller to patients who did not need it in the first criminal conviction of a pharma chief over the opioid epidemic.

A Boston jury also found John Kapoor, the 75-year-old billionaire founder of Insys Theraputics, guilty of defrauding insurance companies in the push to sell Subsys, a spray made from fentanyl, a synthetic opioid many times stronger than morphine.

Subsys was approved for terminal cancer patients but the company targeted sales at a much bigger and more profitable market of people with non-life threatening chronic pain. Prosecutors said that fuelled the opioid epidemic and cost lives.

Four other Insys executives were also convicted on similar racketeering charges after the jury took two weeks to deliberate. They each face up to 20 years in prison.

The convictions will spur demands for executives of other opioid makers to be held to account for an epidemic that has claimed about 400,000 lives over the past two decades.

Drug manufacturers, distributors and pharmacies are already facing hundreds of civil lawsuits by states and cities seeking to recover the costs of the epidemic on public finances, from increased crime to addiction treatment and care for orphaned children. On Thursday, the drug distributor, McKesson, agreed to pay West Virginia $37m to settle a lawsuit over flooding the state with millions of opioid pills without abiding by proper controls.

But there is mounting anger that corporations have spent years paying civil settlements as “the cost of doing business” while continuing to rake in huge profits by illegally pushing the mass prescribing of the drugs or failing to obey laws intended to prevent their misuse. Political leaders in some of the worst-hit parts of the country have called for criminal prosecutions of the executives who made the decisions calling them “drug dealers in Armani suits”.

Kapoor oversaw a marketing strategy at Insys that hired doctors as speakers at educational seminars as cover to pay them more than $1m to prescribe high doses of Subsys to patients who did not need it. Prosecutors said the seminars were no more than social gatherings at expensive New York restaurants followed by company sales reps taking the physicians to strip clubs and bars.

Prosecutors showed the jury spreadsheets of payments to doctors and how much the company profited from each bribe. In one instance, the company paid nearly $260,000 to two New York doctors who wrote more than $6m worth of Subsys prescriptions in 2014. Insys employees also posed as doctors to give insurance companies invented diagnoses to get approval for payments for the drug.

The jury was also shown a promotional rap video of Insys sales reps dancing next to a large bottle of Subsys including the line, “I got new patients, and I got a lot of ’em.”

Sales of Subsys surged as a result of the company’s aggressive marketing, rising from $14m in 2012 when the drug came on the market to nearly half a billion dollars five years later. Fentanyl is a powerful and highly addictive drug that has killed more people than any other opioid over recent years, although most of those who overdose do so on illegal versions of the drug smuggled into the country.

Prosecutors said the kickback scheme was one factor in the opioid epidemic as doctors “saw a huge payday that potentially put people’s lives in danger”. They showed the jury emails in which a former Insys CEO said certain doctors were “owned” by the company because of the amount of Subsys they prescribed.

Prosecutors said the Insys executives risked the lives of patients out of greed.

“These patients were used. Their pain was exploited,” US attorney Nathaniel Yeager told the jury. “The decisions, the money, the strategy came from the top.”

The company’s former vice-president of managed markets, Michael Gurry; its former national sales director, Richard Simon; and two sales directors, Sunrise Lee and Joseph Rowan, were also convicted.

Several other former Insys executives previously pleaded guilty over the scheme and gave evidence against Kapoor.

Michael Babich, the former Insys CEO, pleaded guilty earlier this year. Babich faces up to 20 years in prison when he is sentenced later this year. Babich’s wife, Natalie Levine, an Insys sales rep, is also awaiting sentencing after pleading guilty over the kickback scheme.

Others convicted include the company’s vice-president of sales, Alec Burlakoff, who told the trial Kapoor devised a sales strategy to target doctors known to dispense opioids without too many questions in so-called “pill mills”.

“Pill mills, for us, meant dollars,” he said.

Since you’re here…

… we have a small favour to ask. More people are reading and supporting our independent, investigative reporting than ever before. And unlike many news organisations, we have chosen an approach that allows us to keep our journalism accessible to all, regardless of where they live or what they can afford.

The Guardian is editorially independent, meaning we set our own agenda. Our journalism is free from commercial bias and not influenced by billionaire owners, politicians or shareholders. No one edits our editor. No one steers our opinion. This is important as it enables us to give a voice to those less heard, challenge the powerful and hold them to account. It’s what makes us different to so many others in the media, at a time when factual, honest reporting is critical.

Every contribution we receive from readers like you, big or small, goes directly into funding our journalism. This support enables us to keep working as we do – but we must maintain and build on it for every year to come. Support The Guardian from as little as $1 – and it only takes a minute. Thank you.

https://www.theguardian.com/us-news/2019/may/...-prescribe

Time for Univec... Dr Dalton has a plan! UNVC!

Univec Conglomerate Inc (UNVC) Stock Research Links

UNVC Board Company Profile Buy Rating Time & Sales News Filings Financials
Scroll down for more posts ▼

Top 10 Most Recent News Articles

New Leadership at Reactive Tech: Claudio Facchin Steps In

Updated Category News Views 15

Facchin Joins Reactive Technologies: Power Play or Predictable Move? Let me tell you, the energy sector ain’t for the faint-hearted—especially when you’re talking grid stability. Reactive Technologies just tossed an ace on the table, appointing Claudio Facchin as the new Board Chairman. If you've been around the block, you might recognize Facchin's name from his...

Continue Reading
Ericsson Buybacks: Strategic Moves or Market Maneuver?

Updated Category News Views 33

Breaking Down Ericsson's Strategic Share Buybacks When a company like Ericsson starts pulling stocks off the shelves like they're on sale, it's time to take notice. Between November 2nd and 6th, Ericsson, that telecom giant we all know, went on a little shopping spree, snapping up 500,000 of its own Class B shares. Why should we care? Well, it's a part of their hefty SEK...

Continue Reading
Fibocom LTE Modules Test Drive Satellite Connectivity

Updated Category News Views 247

Boosting IoT with Satellite Connectivity Here's a good one for folks watching the edge of wireless innovation. Fibocom's LTE Cat.1 bis modules, the LE270-EU and LE271-GL, just stretched their legs in New Zealand, connecting seamlessly with SpaceX's Direct to Cell (DTC) satellite system. No fancy hardware swaps, just standard firmware strutting its stuff across satellite...

Continue Reading
Stavian Group Eyes AI-Driven Southeast Asia Growth

Updated Category News Views 189

AI and Infrastructure: A New Chapter for Southeast Asia What does Southeast Asia's future look like with AI steering the ship? Well, there's a fresh breeze of change blowing, and right at the heart of it stands Stavian Group. At the recently held inaugural Fortune SEA500 Summit in Ho Chi Minh City, this conglomerate threw its hat into the ring, painting a vision of growth...

Continue Reading
Delta Marks 19 Years at COP With Bold New Initiatives

Updated Category News Views 0

Delta's Commitment to Global Sustainability Delta's name pops up yet again at the United Nations Climate Change Conference (COP31) in Antalya, Turkey, marking the company's 19th consecutive year of participation. They're mounting efforts to hit that "35×35" target, aiming for 35% electrification by 2035. This isn't just fluff and rhetoric—it’s Delta taking the lead...

Continue Reading
AWS Boosts Agilix's AI Education in Sierra Leone

Updated Category News Views 44

Agilix Labs' Landmark Leap with AWS Just when you think you've got the grip on global education dynamics, a new wave hits your shores, this time courtesy of Agilix Labs and AWS. Agilix Labs snagged a grant from Amazon Web Services, carving a path that blends AI with educational equity in Sierra Leone. Now, if that doesn’t prick up investor ears or yank a few...

Continue Reading
Laboratoires Pierre Fabre and XtalPi Unite for AI-Driven Drug Hunt

Updated Category News Views 6

An Unexpected Turn in the Drug Discovery Arena It's not every day that you see a historic French pharma powerhouse and a cutting-edge Chinese tech firm join forces. On one side, we've got Laboratoires Pierre Fabre, steeped in the history and nitty-gritty of clinical drug development. On the other, we’ve got XtalPi Holdings Limited (2228.HK), bringing their high-tech AI...

Continue Reading
Innovent's SINTBILO® Hits Primary Endpoint in Study

Updated Category News Views 234

Innovent's Latest Breakthrough with SINTBILO® One moment you're sipping coffee, the next you're staring at a clinical milestone. Innovent Biologics has shouted from the rooftops that their drug, SINTBILO® (tafolecimab injection), has wrapped up its Phase 3 CREDIT-5 study, snagging the primary endpoint with both hands. This isn't just any drug; it's marked as the first...

Continue Reading
Novo's Semaglutide Shows Promise in MASH Study

Updated Category News Views 513

Semaglutide, a name on the lips of many investors looking for breakthroughs, is making waves again. This time, the stir comes from recent findings in the MASH field, and it's got folks in white coats quite excited. Revolutionary Results from Novo Novo Nordisk has announced promising results from their phase 3 ESSENCE trial that looks into semaglutide's effects on a...

Continue Reading
FFR's OmniMind Takes Top Spot In RoboColiseum Rankings

Updated Category News Views 347

The AI Race Heats Up with FFR's Big Win Stop the presses—FFR's OmniMind AI just snagged the top spot on RoboColiseum's global rankings. Yeah, you heard right, this ain't just some run-of-the-mill news. As of November 6, they've parked themselves in pole position, beating out heavyweights like NVIDIA's GR00T N1.7 and GPT-6 Astra. That's like hitting a grand slam right...

Continue Reading

Top 5 Most Recently Viewed Articles

AI and Casting: Traditional Stars Hold Court

Updated Category News Views 18

Traditional Stars Still Reign in AI Casting This isn't your average Tinseltown tale—it’s the dawn of AI casting, and the machines have spoken. Everything-PR and Talent Resources rolled out The AI Casting Index 2026, putting five AI engines to the test across a broad spectrum of 75 casting prompts. The results? It’s a harsh spotlight on influencers who might think...

Continue Reading
Newark Alliance Revolutionizes City Development Strategy

Updated Category News Views 495

Newark Alliance Revolutionizes City Development Strategy In a significant move to enhance the City’s overall development framework, the Newark Alliance has emerged as a crucial entity uniting major organizations around a singular vision. This initiative aims to amalgamate efforts in economic development, tourism, and community enhancement under one cohesive structure,...

Continue Reading
Pacific Sun Packaging to Spotlight Protective Solutions at ITAD Summit

Updated Category News Views 214

Pacific Sun Packaging Announces Participation in ITAD Summit Pacific Sun Packaging Inc., a subsidiary of PMGC Holdings Inc. (NASDAQ: ELAB), is excited to announce its participation in the upcoming ITAD Summit. This event will take place at The Bellagio in Las Vegas, where the company will showcase its innovative protective packaging solutions tailored for IT hardware....

Continue Reading
Investors Alert: Recovery Options with Portnoy Law Firm

Updated Category News Views 209

Investors Take Action: Recovering Financial Losses Investors of Western Asset Management Company, LLC have the opportunity to recover losses incurred from investments made in various mutual fund classes. The Portnoy Law Firm is available to guide investors on their path to recovery, providing no-cost consultations to help understand the potential for legal claims....

Continue Reading
Denarius Metals Unveils Technical Insight for Toral Project

Updated Category News Views 136

Denarius Metals Shares Tech Report on Toral Project It's a curious moment in the mining world when Denarius Metals decides to drop their latest gem—a technical report on the Toral Project. We're talking about a full-bodied document rooted in the stringent National Instrument 43-101 standards. This isn't some half-baked release; it's a robust assertion of where they...

Continue Reading