Federal authorities unveil superseding indictment against six former executives, managers.
Billionaire pharmaceuticals entrepreneur John N. Kapoor was arrested by federal agents at his Phoenix home and charged with leading a nationwide criminal conspiracy to illegally distribute an addictive prescription painkiller—the highest ranking former executive of Insys Therapeutics Inc. INSY -22.64% to be charged in a long-running investigation.
Dr. Kapoor, who co-founded Insys and served as its chief executive until earlier this year, was charged by federal prosecutors with participating in an alleged conspiracy to bribe doctors to prescribe large amounts of the drug, Subsys, a mouth-spray version of the potent opioid painkiller fentanyl that is approved by the Food and Drug Administration to treat cancer-related pain. The conspiracy also allegedly involved defrauding health insurers by misleading them into paying for the drug.
Dr. Kapoor, 74 years old, resigned his operational duties at the company earlier this year but retains a seat on its board and owns two-thirds of its shares outstanding.
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