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J&J faces charge for forcing distributors to pay kickbacks to medical staffs
  • By Marian Chu
  • Published 2018.01.05 15:45
  • Updated 2018.01.05 16:45
  • comments 0

A local distributor of Johnson & Johnson Medical Korea filed a complaint against the company, alleging the Korean division of the American pharma giant forced it to cover expenses for its clients, according to a news service here Thursday.

The Seoul Prosecution Office has filed the complaint against J&J Medical Korea on charges of violating the medical law and launched a full-scale investigation, it said.

According to reports, employees at the company asked one of its distributors in an email to spend thousands of dollars on indoor slippers to give to nurses who worked at a hospital with which J&J does business.

The J&J employees also reportedly borrowed the distributor’s corporate card to pay for nurses’ accommodation, meals, and other expenses when they attended academic conferences abroad.

Reports claim J&J charged 7 million won on a local distributor’s corporate card to pay for foreign hotels and restaurants while the nurses were overseas.

The complainant said it could not refuse J&J’s requests for fear of losing business since they worked with the pharmaceutical company on an annual contract basis, reports said.

Johnson & Johnson Medical Korea said the agency is investigating into the employees who allegedly forced the distributor to give kickbacks to medical staff.

“We have launched an internal investigation and reported the case to headquarters,” a J&J Medical Korea official said. “Kim & Chang is currently investigating the case, and we will be able to confirm the truth of the reports by early next month, upon which we will decide what measures to take.”

yjc@docdocdoc.co.kr

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