Icure Pharmaceutical's good manufacturing practice (GMP) violations have led to widespread administrative penalties.

According to the Ministry of Food and Drug Safety, Chong Kun Dang and Dongkook Pharmaceutical's pain-relieving patch Kefem Plaster and Sarafen Plaster received a three-month administrative suspension of manufacturing operations.

Accordingly, Chong Kun Dang and Dongkook will not be able to produce these items subject to the administrative penalty from July 4 to Oct. 3.

The administrative penalty is due to a breach of fiduciary management and supervisory responsibility on Icure.

While Icure was entrusted with the manufacturing process of the items, the company used different types and amounts of cleaning agents listed in the company's standards when cleaning the manufacturing facilities.

The company also either falsified or forgot their daily cleaning logbook.

With the addition of Chong Kun Dang and Dongkook, now seven companies, including Celltrion, Jeil Health Science, Daewoong Pharmaceutical, Myungmoon Pharmaceutical, and Aprogen Biologics, have received administrative penalties tied to Icure's manufacturing violation.

Icure Pharmaceutical CEO Lee Yeong-seok issued an official statement apologizing on behalf of his company last Friday.

"We apologize to our customers and shareholders for the unfortunate incident," Lee said. "To prevent a recurrence, we have strengthened the pharmaceutical factory work process and system, hired a new factory manager, and improved the quality control system."

The company is focusing on the global launch of the donepezil dementia patch, and is striving to increase global sales for both the pharmaceutical business and cosmetics ODM business, improve profitability, and secure new products and new growth engines, Lee added.

Lee stressed that the company will continue striving to improve its systems to ensure that mistakes like this are not repeated.

Icure is scrambling to improve profitability and raise cash.

As of the end of last year, Icure had current liabilities of 110 billion won (84.6 million), while its current assets were 80.7 billion won, resulting in a current ratio of 73.4 percent.

In general, a current ratio of less than 100 percent indicates difficulties in paying debts in the short term.

As of the end of last year, the company had only 50.6 billion won in cash on hand, which means it requires raising more cash.

The immediate threat the company currently faces is its short-term borrowings of 77.3 billion won.

To raise cash, the company is planning to sell off its subsidiary.

Of the 10 consolidated subsidiaries that Icure had as of the end of last year, only Biorosette generated significant sales.

As a result, Icure has put up Biorosette for sales in April to raise cash.

As of 2:30 p.m. Tuesday, Icure Pharmaceutical's shares stood at 2,860 won, down 1.04 percent from the previous trading day.