Controversy arises over illegal rebates made by Company A

A multinational pharmaceutical company only seeks to expand its sales

Expediently used corporate credit cards under implicit approval from the CEO

Made illegal cash-back transactions using credit cards and provided expensive groceries to prescribing doctors

The same company that had received administrative action and sales suspension dispositions for the same issue 10 years ago

The multinational pharmaceutical company A's illegal rebate activities have gone too far and are disrupting competition in relevant markets.

 

According to an anonymous tip on the 15th, Company A has been providing economic benefits to prescribers at large general hospitals to promote drug sales.

 

The same company was investigated by the Fair Trade Commission and the police around 10 years ago, and the Ministry of Food and Drug Safety imposed a fine for related products at the time.

 

Company A owns several global blockbuster products, and although relatively inexpensive latecomer generics have been released for many of their blockbusters, the company’s performance improved by 20% over the past 3 years.

 

Company A's major illegal business activities include providing golf entertainment to prescribing doctors and the use of corporate cards.

 

Regarding this, the informant said, "Implicit rebate sales are rampant under verbal instructions by the CEO.

 

Purchasing groceries at high-end restaurants and illegal card cash-backs are also being allowed." Also, the sales representatives have been providing golf entertainment for doctors.

 

Typically, four players play a round of golf is played together, and its cost ranges from hundreds of thousands of won to well over a million won.

 

According to CP regulations, the entertainment fee per doctor for holding a product briefing session is KRW 100,000, and the same person may not receive entertainment from the same company over 4 times a month.

 

Promotions and souvenirs provided after a product briefing or symposium can be provided for up to KRW 50,000, and meals up to KRW 100,000.

 

Promotional materials that sales and marketing personnel can provide when visiting doctors and pharmacists need to be priced at less than KRW 10,000, retail price.