POST Online Media Lite Edition


South Korea to halt benefits to Novartis, fines it $49.5 million

Staff Writer |
South Korea's health ministry said Wednesday it will suspend providing benefits for nine variations of two drug types manufactured by the local unit of Novartis after the Swiss pharmaceutical giant was found to have been engaged in illegal kickbacks.

Article continues below

For six months starting in August, local customers will have to pay the full price of the nine Novartis items, including dementia drug Exelon, the Ministry of Health and Welfare said. The ministry provides a subsidy for prescription drugs to lower patient burden.

The suspension comes after the company's executives, including the former CEO surnamed Moon, were charged with providing money or other kickbacks known in the industry as rebates to doctors in exchange for prescribing the company's products.

In addition, Novartis was fined a total of 55.9 billion won ($49.5 million).

"The company sincerely apologizes for incurring disappointment and worries to the industry and patients," Novartis said a in a press release.

What to read next

Hyundai Motor affiliate fined for unfair business with subcontractors
Agro-fishery products smuggling in South Korea rises sharply
Russian FAS opened a case against Novartis Pharma