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Opioids, Inc. (full documentary) | FRONTLINE

FRONTLINE PBS | Official・2 minutes read

John Kapoor, a billionaire pharmaceutical executive, was arrested as a significant figure in the opioid crisis, along with other Insys executives, facing criminal charges related to bribery and corruption, culminating in Kapoor's sentencing to 5.5 years in prison and highlighting the importance of prioritizing public welfare over profit in the pharmaceutical industry.

Insights

  • John Kapoor, a pharmaceutical executive, faced criminal charges related to the opioid crisis, involving bribery and corruption in promoting Subsys, a fentanyl spray for cancer pain, showcasing the detrimental impact of unethical practices in the pharmaceutical industry.
  • The Insys scandal unfolded with escalating doses of Subsys, driven by deceptive sales strategies, fraudulent practices, and unethical behavior, ultimately resulting in legal consequences for executives like Kapoor and Burlakoff, highlighting the critical need for regulatory oversight and ethical conduct in the pharmaceutical sector to safeguard public health and well-being.

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  • Who is John Kapoor?

    A pharmaceutical executive arrested for criminal charges.

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Summary

00:00

Billionaire pharmaceutical executive arrested in opioid scandal.

  • Federal agents arrest billionaire John Kapoor, a pharmaceutical executive, in Phoenix.
  • Kapoor is a significant figure in the opioid crisis, facing criminal charges.
  • Insys Therapeutics executives arrested on racketeering charges, impacting the company's shares.
  • Kapoor's background as a successful entrepreneur in the pharmaceutical industry.
  • Kapoor's innovative approach with Subsys, a fentanyl spray for cancer pain.
  • Initial lackluster sales of Subsys leading to Kapoor's dissatisfaction.
  • Alec Burlakoff's entry into Insys, transforming sales strategies.
  • Burlakoff's admission of bribery to boost sales, focusing on speaker programs.
  • Dr. Paul Madison's involvement in speaker programs and overprescribing Subsys.
  • Heather Alfonso's experience as an Insys whale, motivated by financial incentives.

16:13

Insys: High Doses, High Profits, High Controversy

  • Subsys was titrated to higher doses by pressuring prescribers, a directive from Dr. John Kapoor.
  • Subsys doses ranged from 100 to 1,600 micrograms, with prescriptions valued up to $60,000 monthly.
  • Sales reps benefited from escalating doses, with higher doses translating to more money.
  • Contests were held for sales teams based on the doses doctors prescribed, with higher doses earning higher cash prizes.
  • John Kapoor's business thrived, with a pharmacy building named after him and his late wife.
  • Insys went public in May 2013, with stock analyst David Amsellem noting its commercial success.
  • Insys shares rose significantly post-I.P.O., with John Kapoor's investment soaring to close to $550 million.
  • Whistleblowers emerged in 2013, alleging doctors were bribed to prescribe high volumes of Subsys.
  • Insys faced investigations, leading to stock price fluctuations and short sellers like Jim Carruthers questioning the company's practices.
  • Exposés revealed a decadent sales culture at Insys, with sales reps encouraged to prioritize Subsys prescriptions above all else, including through unethical means like affairs and lavish gifts.

32:10

Insys: Deception, Fraud, and Legal Consequences

  • Boyd received emails from Wall Street individuals questioning his understanding of the story.
  • Insys utilized deceptive practices to secure drug approvals, including lying to insurance companies.
  • The Insurance Reimbursement Center (I.R.C.) within Insys directly interacted with insurance companies.
  • Kapoor aimed for a 100% approval rate for drug prescriptions, higher than the industry norm.
  • Special Agent Vivian Barrios from the FBI investigated Insys' misleading practices with insurers.
  • Prior-authorization specialists at Insys manipulated information to confuse insurance companies.
  • Insys employees admitted to fraudulent practices, pocketing money from unnecessary prescriptions.
  • Insys' net revenue surged in 2013 due to faster insurance prescription approvals.
  • Subsys, Insys' painkiller, led to addiction and was linked to numerous deaths.
  • Insys executives, including Kapoor, faced legal consequences for bribery and corruption, leading to arrests and trials.

49:21

Executives convicted in opioid epidemic scandal.

  • Alec Burlakoff testified for five days, linking individuals nationwide to the decision-making at the corporate headquarters, with a spreadsheet revealing Insys' financial transactions with doctors, leading to a guilty verdict against John Kapoor and four other executives for their involvement in the opioid epidemic.
  • Kapoor received a 5.5-year prison sentence, while Burlakoff was sentenced to 26 months, highlighting the significant impact of executives facing jail time on the broader business community and emphasizing the need for pharmaceutical companies to prioritize public welfare over profit.
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