Kapoor Pays NJ Millions for Misleading Subsys Marketing.
John N. Kapoor, 77, former Insys pharma executive, pays New Jersey $ 5 million to settle a lawsuit alleging the drug maker fueled the opioid crisis by overpringing the potent fentanyl opioid Subsys. He is also required to make two payments to New Jersey, a lump sum of $ 1 million and another of $ 4 million. Kapoor was convicted of a bribery and backlash program that prosecutors said fueled the opioid crisis.
“With today’s deal, we reclaimed a substantial sum from a person who used his seat in a company boardroom to sell addictive drugs through bribery and fraud,” said Attorney General Gurbir Grewal. “We look forward to further recoveries from other opioid manufacturers and distributors who are also responsible for helping New Jersey overcome and cure the epidemic they have caused.” He added, “It is the first settlement in a state lawsuit against companies and executives that allegedly manufactured and fraudulently marketed opioids. Most of the money will go to fund New Jersey’s efforts to fight the opioid epidemic. “
Photo by Clayton Robbins on Unsplash
Kapoor and four other former executives were accused of “transferring millions of dollars in setbacks and bribes to prescribing doctors to get them to prescribe the Insys drug Subsys.”
The drug was originally approved by the Food and Drug Administration (FDA) only for the treatment of chronic cancer-related pain. However, it was sold to patients without cancer or to cancer by Kapoor and his colleagues and recovered long before they were prescribed Subsys doses. The misleading marketing program allowed the company’s executives to generate significant profits that affected everyone involved.
“The company also bribed health professionals to write Subsys prescriptions in higher doses than necessary,” said Grewal, so that patients would get addicted and keep coming back for more. “This resulted in a deluge of Subsys subscriptions, many of which resulted in payments from government health and employee compensation programs.”
U.S. assistant attorney Nathaniel Yeager said Kapoor ran the show the entire time. “It was a top-down conspiracy by John Kapoor,” he said in court.
At the time of Kapoor’s indictment, the company stated that it was under new management and that it had “taken necessary and reasonable steps to prevent past mistakes from occurring in the future”.
Kapoor apologized to the victims in the courtroom. “I am broken by the words of the patients,” he said. “I sincerely apologize to you.”
The settlement will prevent Kapoor from “administering, owning or conducting” any business in New Jersey or “owning more than 10% of the shares” in a company that does business in the state.
“We cannot begin to measure the pain and suffering caused by John Kapoor’s calloused greed, but we know it will plague our communities for years to come,” said Sharon M. Joyce, director of the New Jersey office Coordinator for Addiction Responses and Enforcement Strategies. “This settlement rightly makes him responsible for providing the funding necessary to combat the long-lasting and devastating effects of his illegal activities.”
The former pharma executive is paying NJ $ 5 million to settle the opioid lawsuit, according to Grewal
Insys Execs have shown that Subsys patients have been completely disregarded
The lawsuit alleges that Insys illegally promoted the addictive Subsys spray
Insys founder Kapoor has been sentenced to 66 months in prison for opioid regimes