'The former chief executive of Insys Therapeutics Inc (INSY.O) pleaded guilty on Wednesday to participating in a nationwide scheme to bribe doctors to prescribe an addictive opioid medication and has agreed to become a government witness.
Michael Babich, who resigned as the Arizona-based drugmaker’s CEO in 2015, pleaded guilty in federal court in Boston to conspiracy and mail fraud charges after entering into a cooperation deal with prosecutors.
His plea comes less than three weeks before five former Insys executives and managers including John Kapoor, its onetime billionaire founder and former chairman, face trial after being charged with participating in the scheme.
Babich, 42, faces up to 25 years in prison. But the Arizona resident could receive a more lenient sentence by testifying at Kapoor’s Jan. 28 trial. Assistant U.S. Attorney Fred Wyshak in court said Babich committed his crimes at Kapoor’s direction.
Kapoor and his co-defendants have pleaded not guilty to racketeering conspiracy. Beth Wilkinson, Kapoor’s lawyer, had no comment after attending Wednesday’s hearing.
Prosecutors allege that from 2012 to 2015, Kapoor, Babich and others conspired to pay doctors bribes in exchange for prescribing Subsys, an under-the-tongue fentanyl spray for managing severe pain in cancer patients.'
Read more: Former Insys CEO pleads guilty to opioid kickback scheme
Did you like this article?
Thank you for your vote!
6 June 2019
NHS staff who don't get the flu vaccine 'could wear a LABEL' because patients have the right to know and ask why, says England's Chief Medical Officer
3 May 2019
Drug company boss is found guilty of directing a scheme to bribe doctors across the U.S. to prescribe a highly addictive fentanyl spray
2 May 2019
Doctors 'too scared' to give cannabis oil to children despite prescriptions being made legal seven months ago
1 May 2019
Elderly people are routinely being given diabetes drugs they don't need because of a 'pay for performance' scheme which rewards GPs for prescribing pills
From our advertisers
13 hours ago
Behind the Syrian Network for Human Rights: How an opposition front group became Western media’s go-to monitor
From our advertisers