Feds arrest top official of healthcare company, alleging illegal drug importation

Summary

• U.S. authorities accuse two top officials of the Canadian company CANARX of operating a long-running scheme to illegally import prescription drugs into the U.S.
• John Thomas Howard, treasurer & director of CANARX, was arrested Sunday on smuggling & conspiracy charges.
• Bob Howard, president & director of CANARX, remains at large & is wanted in the federal investigation.
• John Thomas Howard faces additional charges for introducing misbranded drugs into interstate commerce & illegal drug importation.
• The criminal complaint covers the period from Feb. 22, 2017 through April 15, 2026.
• CANARX is an alternative funding program (AFP) that sources medications from Canada, the United Kingdom, Australia & New Zealand.
• Federal authorities state that AFPs often obtain medications overseas & ship them directly to patients via supply chains not authorized by pharmaceutical companies.
• The FDA affidavit states there is probable cause to believe CANARX illegally imported or caused the illegal importation of prescription drugs into the United States.
• Joseph Morris, CANARX general counsel, denies all charges against the Howards & states the company will defend vigorously.
• In 2023, the FDA seized medication shipped by CANARX that it said was potentially misbranded & counterfeit.
• In 2019, the FDA sent a warning letter to CANARX regarding the substitution of FDA-approved drugs with unapproved drugs.
• Gilead Sciences has filed a pending civil lawsuit accusing CANARX of illegally importing the HIV medication Biktarvy.
• Gilead Sciences states it has taken strong legal action to protect patients & the integrity of the U.S. medicines supply chain.
• The FDA states that in most circumstances, a person cannot import prescription drugs from other countries into the U.S. as substitutes for FDA-approved drugs.