[Alpha Biz= Ellie Kim] Major South Korean pharmaceutical companies, including Dong-A ST, Daewon Pharmaceutical, and Boryung, have consecutively lost legal challenges against government-imposed drug price reductions.

Despite differing causes—ranging from illegal rebate violations to price adjustments following generic drug launches—courts consistently ruled in favor of the government. Critics have also raised concerns over the industry’s practice of prolonging litigation through multiple court levels to delay price cuts and preserve profits.

In Dong-A ST’s case, the company faced sanctions after being found guilty of providing illegal rebates. The Ministry of Health and Welfare ordered price reductions for 122 pharmaceutical products, citing the need for financial penalties due to disruptions in market order.

Dong-A ST filed an administrative lawsuit to overturn the measure, but lost in lower courts, with the Supreme Court of Korea finalizing the ruling in November last year by dismissing the appeal without further review.

The company had previously been convicted for providing approximately KRW 4.4 billion in rebates to hospital directors and physicians between 2009 and 2012, in violation of pharmaceutical laws.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]