Drug Company Founder, Execs Exploited Patients to Sell Opioid, Prosecutor Says

April 4, 2019 Updated: April 5, 2019

BOSTON—The founder of Insys Therapeutics Inc. put profits over patient safety by bribing doctors to prescribe an addictive fentanyl spray, fueling the U.S. opioid epidemic, a federal prosecutor said on April 4 at the end of a landmark trial.

John Kapoor, the drugmaker’s former chairman, and four colleagues are the first executives of a painkiller manufacturer to face trial for conduct that authorities say was tied to a drug abuse epidemic that kills tens of thousands of Americans each year.

Kapoor was arrested in 2017 on the same day President Donald Trump declared the opioid crisis a public health emergency. In 2017, a record 47,600 people died of opioid-related overdoses, according to the Centers for Disease Control and Prevention.

Local police and paramedics help a man who is overdosing in the Drexel neighborhood of Dayton, Ohio, on Aug. 3, 2017. (Benjamin Chasteen/The Epoch Times)

Assistant U.S. Attorney Nathaniel Yeager told a federal jury in Boston in his closing argument that Kapoor sought to eliminate the risk of Insys failing after investing millions of dollars in founding it by bribing doctors to prescribe the company’s pain drug Subsys.

Yaeger said Chandler, Arizona-based Insys paid doctors to act as speakers at “bogus” events ostensibly meant to educate clinicians about Subsys, which contains fentanyl, a highly potent opioid.

“They eliminated that risk and transferred it to the patients who were prescribed that drug,” Yeager said. “Profits over patients.”

Doctors involved included those who ran “pill mills” and were under investigation, Yeager said. He said in exchange for money, doctors helped Insys exploit their patients, some of whom became addicted to Subsys, a drug meant only for treating cancer pain.

An Ontario Provincial Police officer displays bags containing fentanyl in Vaughan, ON, on Feb. 23, 2017. (The Canadian Press/Chris Young)
An Ontario Provincial Police officer displays bags containing fentanyl in Vaughan, ON, on Feb. 23, 2017. (The Canadian Press/Chris Young)

He said Kapoor also sought to defraud insurers into paying for Subsys and carried out the scheme with the help of his co-defendants, former Insys executives and managers Michael Gurry, Richard Simon, Sunrise Lee, and Joseph Rowan.

But Beth Wilkinson, Kapoor’s attorney, argued that he never engaged in a racketeering conspiracy. She said Kapoor believed in Subsys’ promise and argued the patients who received it needed it to treat their pain.

“He wanted anyone who needed this medication to get it,” Wilkinson said.

She argued the prosecution’s star witnesses—former Insys Chief Executive Michael Babich and Alec Burlakoff, its ex-vice president of sales—lied about Kapoor’s role with the hope of getting lenient sentences after pleading guilty.

John Kapoor, the billionaire founder of Insys Therapeutics Inc, arrives at the federal courthouse for the first day of the trial accusing Insys executives of a wide-ranging scheme to bribe doctors to prescribe an addictive opioid medication, in Boston, Mass., on Jan. 28, 2019. (Brian Snyder via Reuters)

Wilkinson said prosecutors were ignoring those lies in hopes of convicting Kapoor.

“This story cannot be true,” Wilkinson said. “And they don’t care, because they’ve had their eye on this man and these people for years.”

The company has previously said that it has taken steps to prevent past mistakes from happening again and has stressed that Subsys made up 0.02 percent of opioid prescriptions in 2016.

Insys previously agreed to pay $9.45 million to resolve investigations by attorneys general in Oregon, New Hampshire, Massachusetts, and Illinois. It has also faced lawsuits by attorneys general in North Carolina, Arizona, New Jersey, and New Mexico.

By Nate Raymond.