Stewart Rahr

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Stewart J. Rahr
Born 1946 (age 67–68)
Queens, New York
Residence New York City, New York
Nationality United States
Alma mater New York University
Occupation Former pharmaceutical distributor
Net worth Increase US $ 1.7 billion (September 2013)[1]
Spouse(s) Carol K. Rahr (divorced)
Children Robert Rahr
Felicia Rahr[2][3]
Website
The Stewart J. Rahr Foundation

Stewart J. Rahr[4][5] was the owner of pharmaceutical and generics wholesaler Kinray, the largest[1] privately owned pharmaceutical distributor in the world until it was bought out by Cardinal Health in 2010.[6]

Early life and education[edit]

Stewart Rahr was raised in Far Rockaway, Queens, New York,[7] the son of a Jewish family.[8][9] He has an older brother, Elliot.[7] As a youth, he worked at his father's retail pharmacy store in Brooklyn[10] and in 1963, he graduated from Poly Prep Country Day School also in Brooklyn. He graduated with a B.A. from New York University[1] and attended New York University Law School before dropping out to take over his family's pharmacy business[10] which then had $50,000 in sales.[11]

Career[edit]

As the family business also served as a wholesaler for several other pharmacies, Rahr focused on this side of the business[11] eventually expanding it into a wholesale operation named Kinray Inc that served over 4000 pharmacies in the Northeastern United States with revenues of over $5 billion.[11] Rahr was able to grow the business so rapidly through the stockpiling of pharmaceuticals relying on drug price inflation to maximize his profit margin when he sold the extra inventory to retail pharmacies at a later date.[10] Such speculative buying has been criticized for contributing to drug cost inflation by adding an incentive for manufacturers to continuously raise their prices; for giving drug makers false signals that their products were in demand causing them to manufacture excess product; and by exacerbating regional shortages of pharmaceuticals. Distributors contended that the stockpiling was necessary because pharmacies did not want to carry excess inventory and the contribution to drug price inflation was minimal. Pharmaceutical manufacturers now monitor their distributors to ensure that they do not hold more than one month's supply of any given drug.[10] In 2010, Rahr sold Kinray to Cardinal Health for $1.3 billion.[12]

Philanthropy[edit]

Rahr is the largest individual donor to the Metro New York chapter of the Make-A-Wish Foundation.[13] In 2013, Rahr donated $10 million to the Make-A-Wish Foundation, the largest contribution in its history.[7][14]

In November 2013, Rahr donated $15 million to the Prostate Cancer Foundation bringing his total contributions to PCF to over $25 million to help find a cure for the disease.[15]

In January 2014, Rahr sponsored the flight of 64 members of the Knesset to the memorial service at Auschwitz for Holocaust Remembrance Day.[16]

On a visit to Israel, Rahr donated 50 ambulances to United Hatzalah, an organization dedicated to improving response time to those in medical need throughout Israel.[17]

Rahr made a $500,000 donation to the North Shore Animal League America.[18]

In 2012, Rahr donated $640,000 to the Israel Cancer Research Fund, the single largest source of private funds for cancer research in Israel.[19]

In 2012, Rahr donated $100,000 to the Salvation Army for Hurricane Sandy relief efforts.[20] In 2012, he donated $50,000 to help repair the Russian American Jewish Experience (RAJE) in Brighton Beach which was also severely damaged by Hurricane Sandy. The RAJE was founded in 2006 to address the Jewish communal and educational needs of young Russian American Jews.[21]

Personal life[edit]

In 1969, he married Carol K. Rahr. They had two children, Robert and Felicia.[2][3] In 2012, they announced that they were divorcing.[22][23] In 2013, Rahr agreed to pay Carol $250 million as a settlement.[24]

In November 2012, Rahr was banned from the restaurant Nobu in New York.[4][7][25] Also in November 2012, Rahr allegedly pulled a gun on a Trump Tower elevator operator in midtown Manhattan. As a result, police took Rahr to the psychiatric ward of St. Luke's-Roosevelt Hospital Center for evaluation and confiscated his guns.[4][7] Rahr was released the same day and no criminal charges were pressed against him.

Rahr has an apartment in the Trump Park Avenue building.[7][26] In 2005, Rahr purchased a house in The Hamptons for $45 million, reportedly the highest price ever paid in the state of New York for a single-family home.[27][28][29]

References[edit]

  1. ^ a b c "Stewart Rahr". Forbes. 2013-09-17. Retrieved 2014-02-21. 
  2. ^ a b "Medicine Man". Forbes. Retrieved 2014-02-21. 
  3. ^ a b "Guns, Girls And Sex Tapes: The Unhinged, Hedonistic Saga Of Billionaire Stewart Rahr, 'Number One King Of All Fun'". Forbes. 2013-09-17. Retrieved 2014-02-21. 
  4. ^ a b c "Billionaire’s Gun License Is Suspended Amid Inquiry". The New York Times. Retrieved 2014-02-21. 
  5. ^ Pomorski, Chris. "Pharma Mogul Stewart Rahr Sells UES Condo for $3.9 M. | The New York Observer". Observer.com. Retrieved 2014-02-21. 
  6. ^ Dinah Wisenberg Brin, "Cardinal Health to Purchase Kinray", Wall Street Journal, November 19, 2010
  7. ^ a b c d e f "Guns, Girls And Sex Tapes: The Unhinged, Hedonistic Saga Of Billionaire Stewart Rahr, 'Number One King Of All Fun'". Forbes. 2013-09-17. Retrieved 2014-02-21. 
  8. ^ "The Rahr of the Crowd". Jewishvoiceny.com. 2012-11-14. Retrieved 2014-02-21. 
  9. ^ "Billionaire Philanthropist Stewart Rahr helps young Russian American Jews rebuild after Hurricane Sandy - American Forum of Russian Jewry". Afrj.us. 2012-11-21. Retrieved 2014-02-21. 
  10. ^ a b c d "Making a Fortune by Wagering That Drug Prices Tend to Rise". The New York Times. Retrieved 2014-02-21. 
  11. ^ a b c Banjo, Shelly (2010-05-29). "One Man's Wishful Thinking - WSJ.com". Online.wsj.com. Retrieved 2014-02-21. 
  12. ^ "Cardinal Buys Kinray for $1.3 billion". The New York Times. Retrieved 2014-02-21. 
  13. ^ "Unveiling Stewart Rahr's Wall of Wishes". The Make-A-Wish Foundation. Retrieved 2010-03-31. 
  14. ^ "Billionaire Stewart Rahr Gives $10 Million Donation To Make-A-Wish". Jewish Business News. 2013-02-03. Retrieved 2014-02-21. 
  15. ^ Smith, Emily (2013-12-11). "Milken’s cancer fund raises $24M at gala". Page Six. Retrieved 2014-02-21. 
  16. ^ Frister, Roman (2014-01-26). "Auschwitz memorial ceremony financed by 'King of Fun' - National Israel News". Haaretz. Retrieved 2014-02-21. 
  17. ^ Friedson, Felice. "Flamboyant billionaire Stewart Rahr wows Israel | Israel". Jewish Journal. Retrieved 2014-02-21. 
  18. ^ Garvey, Marianne (2014-02-03). "Justin Bieber is refused entry to club, parties in New York over Super Bowl weekend". NY Daily News. Retrieved 2014-02-21. 
  19. ^ "Israel Cancer Research Fund (ICRF) Honors Artist Peter Max, Mary Max And Oncologist Dr. Yashar Hirsh". Jewishvoiceny.com. 2012-12-12. Retrieved 2014-02-21. 
  20. ^ "Haute 100 NY Update: Billionaire turned philanthropist, Stewart Rahr, donates $100,000 to Sandy Relief Fund". Hauteliving.com. Retrieved 2014-02-21. 
  21. ^ "RAJE Benefits From Generosity of Billionaire Stewart Rahr | Jewocity Blog". Jewocity.com. 2012-11-26. Retrieved 2014-02-21. 
  22. ^ "Stewart Rahr: Playboy billionaire set to make one of New York's biggest divorce payouts | Mail Online". Dailymail.co.uk. Retrieved 2014-02-21. 
  23. ^ "Wife divorcing billionaire Stewart Rahr after 43 years | Page Six". Nypost.com. 2012-12-03. Retrieved 2014-02-21. 
  24. ^ "Rahr, wife settle for $250M | Page Six". Nypost.com. 2013-05-14. Retrieved 2014-02-21. 
  25. ^ "How To Get Banned From Nobu: A Billionaire's Guide". Forbes. 2012-10-24. Retrieved 2014-02-21. 
  26. ^ "Property valuation of Park Avenue, Manhattan, NY: (TRUMP PARK AVENUE LLC)". City-data.com. Retrieved 2014-02-21. 
  27. ^ "$45 Million Record". Forbes.com. Retrieved 2014-02-21. 
  28. ^ Saul, Stephanie (2005-01-26). "Making a Fortune by Wagering That Drug Prices Tend to Rise". The New York Times. Retrieved 2014-02-21. 
  29. ^ "Newsday - The Long Island and New York City News Source". Pqasb.pqarchiver.com. 2004-12-31. Retrieved 2014-02-21.