John Thomas Howard was arrested on smuggling and conspiracy charges, with additional allegations of introducing misbranded drugs into interstate commerce. His brother, Bob Howard, the president of CANARX, is also implicated but has not yet been arrested.
The FDA's investigation indicates that CANARX may have illegally imported prescription drugs into the U.S. from countries like Canada, the U.K., Australia, and New Zealand.
This follows a CNBC investigation that highlighted the growing presence of alternative funding programs (AFPs) in the U.S. healthcare system, which offer high-cost specialty drugs at lower prices but often do so through questionable legal channels.
The FDA has previously warned CANARX about its practices, and the company has faced scrutiny for potentially misbranding and counterfeiting medications. Gilead Sciences has also filed a civil lawsuit against CANARX for allegedly importing its HIV medication, Biktarvy, illegally.
The outcome of these legal challenges could have significant implications for CANARX and the AFP model, which relies on the legality of importing medications for personal use