April 20, 2024

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[THE INVESTOR] A total of 11 Korean drug makers including Hanmi Pharmaceutical and CJ HealthCare face heavy penalties for having dished out illegal rebates, according to the Ministry of Health and Welfare on March 26.

The ministry has decided to order an average 8.38 percent price cut on some 340 items produced by these pharmaceutical companies. The move comes after the prosecutors launched an investigation into the companies for kickback cases that occurred between August 2009 and June 2014. 

“With the cuts, we expect to slash the annual health insurance budget by about 17 billion won,” said a ministry official adding that the government will respond firmly toward kickbacks by sanctioning both recipients and providers.

The list of guilty drug makers included CJ HealthCare, Hanmi Pharmaceutical, Aju Pharm, Yungjin Pharm, Ildong Pharmaceutical, PMG Pharm, HanAll Biopharma, Il-Yang Pharmaceutical, Inist Biopharma, PharmaKING and CMG Pharmaceutical.

By Park Han-na (hnpark@heraldcorp.com)