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2009: $1.4B - Zyprexa





FOR IMMEDIATE RELEASE
Thursday, October 26, 2017
Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with Racketeering


Defendant and other executives allegedly bribed doctors and pharmacists to prescribe fentanyl spray meant for breakthrough cancer pain

BOSTON – The founder and majority owner of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a Fentanyl spray intended for cancer patients experiencing breakthrough pain.

John N. Kapoor, 74, of Phoenix, Ariz., a current member of the Board of Directors of Insys, was arrested this morning in Arizona and charged with RICO conspiracy, as well as other felonies, including conspiracy to commit mail and wire fraud and conspiracy to violate the Anti-Kickback Law. Kapoor, the former Executive Chairman of the Board and CEO of Insys, will appear in federal court in Phoenix today. He will appear in U.S. District Court in Boston at a later date.

The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.

The superseding indictment charges that Kapoor; Michael L. Babich, 40, of Scottsdale, Ariz., former CEO and President of the company; Alec Burlakoff, 42, of Charlotte, N.C., former Vice President of Sales; Richard M. Simon, 46, of Seal Beach, Calif., former National Director of Sales; former Regional Sales Directors Sunrise Lee, 36, of Bryant City, Mich., and Joseph A. Rowan, 43, of Panama City, Fla.; and former Vice President of Managed Markets, Michael J. Gurry, 53, of Scottsdale, Ariz., conspired to bribe practitioners in various states, many of whom operated pain clinics, in order to get them to prescribe a fentanyl-based pain medication. The medication, called “Subsys,” is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer." https://www.justice.gov/usao-ma/pr/founder-and-owner-pharmaceutical-company-insys-arrested-and-charged-racketeering

Top Executives of Insys, an Opioid Company, Are Found Guilty of Racketeering
https://www.nytimes.com/2019/05/02/health/insys-trial-verdict-kapoor.html



Side Effects May Include Lawsuits

Anointed with names like Abilify and Geodon, the drugs were given to a broad swath of patients, from preschoolers to octogenarians. Today, more than a half-million youths take antipsychotic drugs, and fully one-quarter of nursing-home residents have used them. Yet recent government warnings say the drugs may be fatal to some older patients and have unknown effects on children.

The new generation of antipsychotics has also become the single biggest target of the False Claims Act, a federal law once largely aimed at fraud among military contractors. Every major company selling the drugs — Bristol-Myers Squibb, Eli Lilly, Pfizer, AstraZeneca and Johnson & Johnson — has either settled recent government cases for hundreds of millions of dollars or is currently under investigation for possible health care fraud.


Antipsychotic Medications Are Spelling Legal Trouble for Drugmakers

Antipsychotic medications are now the largest-selling class of drugs in the U.S. They have grown from a niche product to the king of blockbusters, accounting for more than $14.6 billion in annual sales. However, they have also recently become the most common subject of major enforcement actions. Every manufacturer of antipsychotics has faced legal challenges over their marketing.




2010 nyt: Side Effects May Include Lawsuits
https://www.nytimes.com/2010/10/03/business/03psych.html


trouble: Antipsychotic Medications Are Spelling Legal Trouble for Drugmakers
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2993073/