John Kapoor

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John Kapoor
Born
John Nath Kapoor

1942/1943 (age 77–78)[1]
Amritsar, India
NationalityAmerican
Alma materInstitute of Chemical Technology, Mumbai
University at Buffalo
Known forConvicted felon as a large shareholder of Akorn Pharmaceuticals
Founder and chairman, Insys Therapeutics
Net worth>$1billion (2013)
US$175 million (May 2019)[2]
Spouse(s)Editha Kapoor (deceased)
Children4

John Nath Kapoor (born 1942/1943) is an American multi-millionaire, pharmaceutical entrepreneur, former CEO of Insys Therapeutics, and majority shareholder in the generic drug manufacturing company Akorn.[3] In the fall of 2017, Kapoor was arrested and charged with numerous felony counts including RICO conspiracy, conspiracy to commit wire fraud, and other crimes. In June 2019, he was found guilty on all counts.[3][4]

Early life[edit]

John Nath Kapoor[5] was born in Amritsar, India, into a family of modest means. He later moved to Mumbai, where he graduated from the Institute of Chemical Technology (formerly UDCT) with a degree in pharmacy.[6][7] After moving to the United States, he attended the University at Buffalo on a scholarship and obtained a doctorate in medicinal chemistry in 1972.[7]

Career[edit]

He began his career in 1972 at Invenex Pharmaceutical in Grand Island, New York.

He worked his way up at LyphoMed, took the company public and oversaw its operations through a scandal involving lax production standards that resulted in several patients' deaths.[3][8]

Personal life[edit]

He moved from India to Lake Forest, Illinois. He has four children and now lives in Phoenix, Arizona. The John and Editha Kapoor Charitable Foundation, which supports the fight against cancer, was named after his late wife Editha, who died of breast cancer.[1] The University at Buffalo School of Pharmacy and Pharmaceutical Sciences named their building John and Editha Kapoor Hall, after a donation to the school by John, to honor him and his late wife. On June 3, 2019, the University at Buffalo passed a resolution to remove Kapoor's name from the UB Pharmacy School's building in light of Kapoor's RICO conviction.[9]

Legal issues[edit]

In October 2017, Kapoor was arrested in Arizona and charged with RICO conspiracy, conspiracy to commit wire fraud, and conspiracy to violate the Anti-Kickback Law.[10] The charges stem from allegations that he participated in a scheme to bribe doctors to prescribe fentanyl, a powerful synthetic opioid manufactured under the brand name Subsys by his company Insys Therapeutics.[11] U.S. Attorney William Weinreb said the charges reflected authorities' commitment to combat the opioid epidemic.[11] Kapoor is also alleged to have conspired to defraud health insurance providers.[10] Shortly after the charges were announced, Kapoor resigned from the Board of Insys Therapeutics.[12]

On May 2, 2019, Kapoor was convicted of engaging in a racketeering conspiracy to increase the profits of his company's opiate painkiller, Subsys.[13] On January 23, 2020, he was sentenced to 5.5 years in prison and described as a "former billionaire";[14] Federal prosecutors had asked for 15 years.[15] Because of COVID-19, Kapoor is not in prison custody while he prepares his appeal.[16]

References[edit]

  1. ^ a b "John Kapoor". Forbes.
  2. ^ January 23, 2020. Former Insys exec John Kapoor gets 5 1/2 years for opioid scheme. CNBC.
  3. ^ a b c "Pharmaceuticals Developer John Kapoor Is New Billionaire". Forbes. 4 October 2013. Retrieved 8 January 2014. Kapoor's worth well over $1 billion
  4. ^ "Stocks". Bloomberg.com. Retrieved 29 October 2017.
  5. ^ "Akorn Inc". opencorporates. Retrieved 1 October 2015.
  6. ^ Rajghatta, Chidanand (3 May 2019). "Indian-American pharma executive convicted of opioid racketeering - Times of India". The Times of India. Retrieved 24 July 2020.
  7. ^ a b "John N. Kapoor, PhD '72". Buffalo.edu. Retrieved 12 May 2015.
  8. ^ Herper, Mathew (25 October 2015). "An Opioid Spray Showered Billionaire John Kapoor In Riches. Now He's Feeling The Pain". Forbes. Retrieved 28 January 2019.
  9. ^ "John and Editha Kapoor Hall". The School of Pharmacy and Pharmaceutical Sciences. Retrieved 22 May 2018.
  10. ^ a b "Founder and Owner of Pharmaceutical Company Insys Arrested and Charged with Racketeering". www.justice.gov. Retrieved 26 October 2017.
  11. ^ a b Nate Raymond (26 October 2017). "Billionaire Insys founder charged in U.S. opioid bribe case". Yahoo! News. Reuters. Retrieved 28 October 2017.
  12. ^ Wiles, Russ (30 October 2017). "Arrested billionaire resigns from Chandler's Insys Therapeutics board". The Arizona Republic. Arizona, USA. Retrieved 30 October 2017.
  13. ^ Walker, Joseph (2 May 2019). "Insys Co-Founder and Former Employees Convicted of Racketeering Conspiracy". The Wall Street Journal. Retrieved 2 May 2019.
  14. ^ Gabrielle Emanuel; Vanessa Romo (23 January 2020), Pharmaceutical Executive John Kapoor Sentenced To 66 Months In Prison In Opioid Trial, National Public Radio
  15. ^ "Drug Company Founder Gets 5 Years in Prison for Bribery Scheme to Boost Opioid Profits". Gizmodo. Retrieved 24 January 2020.
  16. ^ https://www.biospace.com/article/convicted-insys-founder-uses-covid-19-as-attempt-to-remain-free-on-bail-during-appeals-process/