From CNBC · Scott Zamost · · 2m
Feds arrest CANARX treasurer on drug smuggling charges
U.S. authorities accuse the top officials of a Canadian drug importer of running an illegal scheme to bring prescription medications into America.
In brief
U.S. authorities accuse the top officials of a Canadian drug importer of running an illegal scheme to bring prescription medications into America. John Thomas Howard, treasurer of Canadian drug importer CANARX, was arrested Sunday on smuggling and conspiracy charges for allegedly operating a long-running illegal drug…
Treasurer arrested in drug scheme
John Thomas Howard, treasurer and director of Canadian company CANARX, was arrested Sunday on smuggling and conspiracy charges. Federal authorities accuse him of operating a long-running illegal drug importation scheme.
Brother also wanted in investigation
Bob Howard, John's brother and CANARX president and director, is wanted in the federal investigation but has not yet been taken into custody, according to an affidavit from FDA special agent Dustin Dobbs.
Multiple charges filed
John Thomas Howard faces charges of smuggling, conspiracy, introducing misbranded drugs into interstate commerce, and illegal drug importation. The arrest warrant covers the period from February twenty-second, twenty seventeen through April fifteenth, twenty twenty-six.
What CANARX claims to do
CANARX, founded in two thousand two and based in Windsor, Ontario, Canada, describes itself as the first international prescription provider for the U.S.and the safest such program.
Part of broader AFP trend
CANARX is one of several alternative funding programs, or AFPs, that have become more common as drug costs rise.These companies offer high-cost specialty drugs at lower prices through employers, sometimes requiring staff to use them.
Prior FDA enforcement actions
In twenty nineteen, the FDA sent CANARX a warning letter saying it was substituting FDA-approved drugs with unapproved drugs. In twenty twenty-three, the agency seized CANARX medication it said was potentially misbranded and counterfeit.
Company denies wrongdoing
CANARX general counsel Joseph Morris told CNBC in a statement: "The Howards deny all the charges against them, will defend vigorously, and expect to be vindicated in court."
“The Howards deny all the charges against them, will defend vigorously, and expect to be vindicated in court.”
Gilead also suing CANARX
In a separate civil lawsuit, pharmaceutical company Gilead Sciences accused CANARX and others of illegally importing Biktarvy, its HIV medication.
At a glance
John Thomas Howard, treasurer of Canadian drug importer CANARX, was arrested Sunday on smuggling and conspiracy charges for allegedly operating a long-running illegal drug importation scheme into the U.S.
