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CANARX official arrested on drug importation charges
CNBC • • world
Key Points:
- U.S. authorities have charged John Thomas Howard, treasurer and director of Canadian company CANARX, with smuggling, conspiracy, and illegal importation of prescription drugs into the U.S.; his brother Bob Howard, president and director, is also wanted.
- CANARX, operating since 2002, has been accused of illegally importing prescription drugs from countries like Canada, the UK, Australia, and New Zealand, bypassing FDA regulations and posing safety risks.
- The company was previously scrutinized by the FDA, which seized potentially misbranded and counterfeit drugs in 2023 and issued a warning in 2019 about unapproved drug substitutions.
- CANARX and similar alternative funding programs (AFPs) offer lower-cost specialty drugs by importing medications directly to U.S. patients, a practice FDA considers mostly illegal except in limited personal-use cases.
- Gilead Sciences has filed a civil lawsuit against CANARX for illegally importing its HIV medication Biktarvy, while government and industry efforts continue to address the legality and safety of such drug importation schemes.
