The Seoul Administrative Court Wednesday suspended the Ministry of Health and Welfare’s disciplinary action to suspend reimbursement for pharmaceutical products of Dong-A ST.
|Dong-A ST headquarters in Yongdu-dong, eastern Seoul|
The administrative order came after Busan District Prosecutors’ Office’s indictment of Dong-A ST for offering 5.47 billion won ($4.82 million) worth of illegal rebates to doctors to promote 162 medicines from August 2009 to March 2017.
The disciplinary action involves the suspension of reimbursement for 87 products, including hepatitis drug Hepsevir Tab. 10mg, for two months from June 15 to Aug. 14, and a fine of 13.8 billion won on 51 other medicines.
During that time, Dong-A ST had said it would file an administrative suit against the ministry’s ruling.
“We do not deny breaching the Pharmaceutical Affairs Act,” the company said. “However, there are a considerable number of debatable issues in the administrative order.”
The company added that it would actively appeal the “unfairness and irrationality” of the administrative discipline and make sure that there will be no damage to medical institutions and patients who have been taking its medications.
With the decision, the ministry’s disciplinary action will be put on hold until there is a formal court ruling. It will also allow Dong-A ST, which had been at risk of watching some of its products kicked out of the market, to market its drugs with little problems for the time being.
<© Korea Biomedical Review, All rights reserved.>