South Korea to halt benefits to Novartis, fines it $49.5 millionStaff Writer | May 25, 2017
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.
Medicine Providing rebates to doctors
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. ■