FDA Probe Leads to Arrest of Canadian Drug Importation Executive

A senior executive of Canadian prescription drug supplier CANARX has been arrested on federal charges involving an alleged scheme to illegally import prescription drugs into the U.S., according to CNBC. John Thomas Howard, the company's treasurer and a director, was arrested Sunday on charges including smuggling, conspiracy, introducing misbranded drugs into interstate commerce and illegal drug importation. His brother, CANARX president Bob Howard, is also wanted by federal authorities but has not been taken into custody, CNBC reported.

An affidavit by FDA Office of Criminal Investigations special agent Dustin Dobbs alleges that CANARX illegally imported or facilitated the importation of prescription drugs into the U.S. The criminal complaint covers conduct from 2/2017 through 4/2026.

The Windsor, Ontario-based company supplies lower-cost prescription medications sourced from foreign countries to U.S. patients through employer-sponsored programs.

FDA previously issued CANARX a 2019 warning letter, alleging that the company substituted unapproved foreign drugs for FDA-approved medications prescribed by U.S. healthcare providers, potentially exposing patients to safety risks.

CANARX general counsel Joseph Morris told CNBC that the Howard brothers deny the charges, intend to defend themselves vigorously and expect to be vindicated.

The company also faces a separate civil lawsuit brought by Gilead Sciences alleging illegal importation of its HIV treatment Biktarvy.