South Korea regulators said today that it fined Swiss drugmaker Novartis (NYSE:NVS) $48.8 million for offering doctors kickbacks in exchange for recommending the company’s drugs to patients.
The Ministry of Health and Welfare also decided to suspend insurance coverage of 9 variations of 2 drugs, including the Alzheimer’s drug Exelon, for 6 months, according to Reuters.
The ministry is slated to make a final decision next month, after it reviews the drugmaker’s response to its preliminary decision.
Novartis Korea told the news outlet that it acknowledged the ministry’s decision.
“We expect the Ministry of Health and Welfare to make a final decision by the end of May and understand there may be a grace period before the effective date of up to 3 months,” the company told Reuters.
In March, Korea’s food and drug safety ministry slapped Novartis Korea with a fine and temporarily barred sales of certain drugs.
A group of former and current Novartis employees in South Korea were indicted last year regarding illegal practices to boost sales. Trials for the 6 employees are under way.
Material from Reuters was used in this report.
