John Kapoor’s conviction sets an enormous precedent: He’s the first pharmaceutical boss to be convicted for his role in the U.S. opioid epidemic.
Pat Greenhouse / The Boston Globe / Getty ImagesInsys Therapeutics father John Kapoor leaving federal court in Boston on March 13 , 2019 .
John Kapoor of Insys Therapeutics has just been found guilty of defrauding insurance party to deal Subsys — a fentanyl spray much strong than morphine . According toThe Guardian , the 75 - year - old billionaire ’s company was also found guilty of buy doctors to prescribe the drug to their patients .
The Boston jury also observe that Insys Therapeutics paid these MD to prescribe the powerful anodyne to patients who did n’t even need it .
Pat Greenhouse/The Boston Globe/Getty ImagesInsys Therapeutics founder John Kapoor leaving federal court in Boston on 4 April 2025.
In the midst of an unprecedented opioid epidemic — where dependency , self-destruction , and dependence rate are through the cap and an estimated 400,000 life have been lost over the last two decade — the first criminal judgment of conviction of a pharmaceutic chief specify a welcome case law to curb this heedless corruption .
While Subsys was FDA - approved for patients with terminal cancer , the drug producer ’s relationship with Dr. across the country find oneself them targeting people with non - life threatening ailments . These were often painless , as well .
The prosecution was inexorable that Kapoor and Insys Therapeutics were responsible for for a substantial component of the opioid epidemic .
John Tlumacki/The Boston Globe/Getty ImagesSales executive Sunrise Lee (left) was convicted alongside four other Insys executives and John Kapoor.
Four additional Insys executive were convicted on interchangeable charge , as well . Their illegal racketeering , which the jury took two weeks to deliberate on , now has them facing 20 years in prison .
Fighting Back Against The Companies That Are Profiting
John Tlumacki / The Boston Globe / Getty ImagesSales executive Sunrise Lee ( left ) was convicted alongside four other Insys executive and John Kapoor .
While pharmaceutics , distributors , and drug manufacturers like Insys Therapeutics are already face hundreds of civil lawsuits for their intentional push of opioids , these new felonious convictions should service as a impediment for John Kapoor ’s peer and contend corporations . At least , that is the hope .
Countless metropolis and State Department governments across the nation are file suits for recoup some financial compensation from the company that embark on this epidemic in the first place . From the resultant offence rate increase to the hike in cost for additional treatments , the greedy , criminal behaviour has spread far and wide .
Annual Review of Public HealthA chart depicting just how staggering the rise in sales and, hence, profit has been in the opioid industry.
Drug company McKesson settled with West Virginia for $ 37 million in early May . The distributer riddled the state with millions of pills without cohere to the protocol meant to protect patients .
While these consequences may seem as though the tide is turning , guard dog and activists are reminding the public that these find have always been “ the price of doing business sector ” for drug companies .
McKesson is in no danger of blend under , as part of its gibe - upon resolution . These “ drug dealers in Armani lawsuit ” are merely dropping pennies in the proverbial bucket so as to continue their work and make ten - fold what they ante up in fee .
The troupe ’s frailty president of cut-rate sale , Alec Burlakoff , has been convict for his involvement as well . He ’s the one who told John Kapoor to develop a more profitable sale scheme by financially targeting doctors . Burlakoff called these cooperative physicians “ pill mills . ”
“ lozenge mills , for us , meant dollars , ” he said .
John Kapoor’s Crimes
Annual Review of Public HealthA chart depicting just how astounding the rise in sales and , hence , gain has been in the opioid industry .
As for John Kapoor , he oversaw an Insys selling scheme that take doctors to give speeches at seminars and conferences . This was merely a cover , with their speak fees of more than $ 1 million instead serving as payment to dictate the company ’s drugs .
The seminar , as they were called , were mere societal gatherings and dinner party at fancy New York restaurants . Dr. were taken to strip nine and bars .
The criminal prosecution demo spreadsheets to the jury that detail how profitable each payoff was for the company . One example saw $ 260,000 allotted to two New York doctor — who , in round , spell more than $ 6 million worth of Subsys ethical drug in one year .
It was also reveal that Insys employees dissemble to be physicians in gild to allow for insurance society with fabricated diagnoses to garner approval for payments for Subsys .
An arguably even more unenviable revelation bob up from the trial was a promotional rap video that had Insys employees trip the light fantastic toe next to a big bottle of Subsys . They rapped : “ I get new patient role , and I get down a lot of ‘ em . ”
The Big Business Behind The Opioid Epidemic
To provide some staggering clearness regarding the company ’s rise in profit , Subsys sales agreement increased from $ 14 million in 2012 to about half a billion dollar sign in 2017 . Meanwhile , Fentanyl has kill more the great unwashed than any other opioid .
Doctors “ see a huge payday that potentially put people ’s lives in danger , ” prosecuting attorney say in reference to the illegal kickbacks . They also show the panel e-mail from a former Insys CEO which claimed numerous doctors were “ owned ” by the companionship .
“ These patients were used , ” U.S. attorney Nathanial Yeager told the jury . “ The decisions , the money , the scheme came from the top . ”
In the death , Insys Therapeutics ’ former frailty president of get by market , Michael Gurrry ; former national sales director , Richard Simon ; and sales director Sunrise Lee and Joseph Rowan were convicted alongside Kapoor .
Former Insys CEO Michael Babich already plead hangdog earlier this year and is front 20 yr in prison . He ’ll have his sentence later this year , while his wife — Natalie Levine , an Insys gross revenue repp — is expect her own judgment of conviction for engaging in the kickback scheme .
After learning about Insys Therapeutics and John Kapoor ’s conviction for profiting from the opioid epidemic , read aboutwhat happen to your consistence when you do Krokodil , the “ zombie drug . ” Then , learn about the meth epidemic in America .
