FT News Briefing The inside story of a disgraced drugmaker
Jun 19, 2020
Hannah Kuchler, FT's pharmaceutical correspondent, dives deep into the shocking story of Insys Therapeutics, the first drugmaker executives imprisoned for their role in the opioid crisis. She reveals their disturbing bribery schemes aimed at getting doctors to prescribe dangerous fentanyl. The discussion highlights how aggressive marketing overwhelmed ethical practices, contributing directly to widespread addiction. Kuchler also discusses the crucial role of whistleblowers in bringing these legal battles to light and the continuing impact of this scandal on the pharmaceutical industry.
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Insys's Rise and Fall
- Insys Therapeutics, founded by John Kapoor, developed a fentanyl-based drug, Subsys, initially intended for cancer patients.
- Despite a slow start, the company's stock soared 400% in 2013 due to illegal sales tactics.
Bribery Scheme
- Insys bribed doctors with "speaker fees" to prescribe Subsys, incentivizing higher doses for increased profits.
- Alec Burlakoff, VP of Sales, admitted to bribing doctors to meet Kapoor's aggressive sales targets.
Sales Tactics
- Burlakoff sought salespeople with a "killer instinct" and "almost no conscience."
- He even hired a former exotic dancer, prioritizing aggressive sales tactics over ethical concerns.