Seoul Western District Prosecutors' Office has charged Swiss pharmaceutical company Novartis executives in South Korea for offering illegal rebates to doctors.

The company has confirmed media reports that six executives, including the president, from the South Korean arm of Novartis have been accused of providing $2.4m in illegal rebates since 2011.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Novartis was quoted by Reuters in a statement as saying: "Some associates supported travel to overseas congresses for some healthcare practitioners in a way that did not fully comply with self-regulation standards."

Though the Swiss company accepted the fraud, it rejected the accusation that the ‘alleged conduct was sanctioned by the most senior management of Novartis Korea’.

"A total of 34 people, including 15 doctors and the heads of five medical journals have been accused in the case, reported the Financial Times."

With the accusation, prosecutors have demanded that the South Korean Government needs to suspend the operations of the domestic unit of Novartis.

A total of 34 people, including 15 doctors and the heads of five medical journals have been accused in the case, reported the Financial Times.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to the prosecutors of the Seoul Western District, the pharmaceutical company has offered such benefits to doctors who attended seminars conducted by the medical journals.

Seoul Ministry of Food and Drug Safety was quoted by Financial Times as saying: “We will take proper punitive measures against the company and people responsible, according to our regulations, after further investigations into the case.”

The country's health ministry has been urged by the prosecutors to cut down the prices of the involved Novartis drugs, which can be done directly through the national health insurance scheme.

The prosecutors have also asked to suspend the licences of the doctors who were allegedly involved in the fraud.