An Indian-American pharmaceutical billionaire, John Nath Kapoor, 74, has been charged with a countrywide conspiracy in the US for bribing doctors to over- prescribe a potent Opioid to patients and committing fraud on insurance firms.
After an initial indictment on him and six of his team members in 2016, John Nath Kapoor, who is also the current member of the Board of Directors of the pharmaceutical company Insys Therapeutics was arrested by FBI. He is charged with conspiracies to bribe doctors and pharmacy benefit managers to needlessly subscribe Subsys, which is a Fentanyl spray to treat patients with severe cancer pain.
It is alleged that over 20,000 Americans died of synthetic Opioid overdoses in 2016 alone, and millions are addicted to Opioids. “The medication, called ‘Subsys,’ is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain,” the attorney’s office statement read. “In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer,” it added.
Following the arrest, the company shares fell 23 per cent to $ 5.74, a three-year inter day low. Kapoor also holds a stake in generic drug manufacturer Akorn Pharmaceuticals.