First Conclusion on 'Illegal Clinical Trials' in 5 Years... How Far Have the Rebate Allegations Gone?

2017 Report Received by MFDS
First Trial Started in 2019
First Trial Verdict Delivered on 17th
Rebate Trial Still Ongoing
Verdicts Issued for Doctors Receiving 'Bribes'

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[Asia Economy Reporter Oh Gyumin] The court has delivered its first ruling in five years on the Anguk Yakpum case, which sparked controversy for conducting illegal clinical trials on employees. Earlier, doctors who received entertainment in connection with the rebate allegations were sentenced to prison, but no conclusion has been reached for the executives and employees accused of leading the scheme for various reasons.

On the 17th, Judge Kim Woo-jung of the Criminal Division 8 at the Seoul Western District Court sentenced former Anguk Yakpum Vice Chairman Eo Jin to 10 months in prison for violating the Pharmaceutical Affairs Act and obstructing public officials through deception. Two employees who were tried together were sentenced to 10 months in prison and fined 10 million won. The Anguk Yakpum corporation was also fined 20 million won.

However, the court acknowledged that former Vice Chairman Eo conspired with employees to conduct unauthorized clinical trials but acquitted him of the charge of manipulating data at the non-clinical trial stage to obstruct the Ministry of Food and Drug Safety’s (MFDS) approval process for clinical trial plans, stating that the evidence submitted by the prosecution was insufficient to prove this.

According to the prosecution, in January 2016, they administered a developing antihypertensive drug to 16 Anguk Yakpum employees and drew blood 20 times per person, totaling 320 times, over time. In June of the same year, they also administered an anticoagulant drug to 12 employees and drew blood 22 times per person, totaling 264 times. Additionally, in May 2017, when a test on beagle dogs during the anticoagulant development process failed, they replaced some samples, reanalyzed them, manipulated the data, and submitted it to the MFDS, leading to prosecution.

The illegal clinical trial allegations against Anguk Yakpum first surfaced five years ago. In July 2017, a tip-off was received by the MFDS that illegal clinical trials were being conducted at a research institute under Anguk Yakpum. After a year, in 2018, the prosecution took over the case and began an investigation, and in September 2019, former CEO Eo Jin and three others, along with the company, were indicted without detention.

Eojin, Vice Chairman of Anguk Pharmaceuticals

The first trial for them was held in November 2019. At that time, former Vice Chairman Eo denied all charges, but two employees admitted to the facts and conspiracy, arguing that “their passive position, having to carry out orders from former Vice Chairman Eo, should be taken into consideration.”

Subsequently, witness examinations continued fiercely 13 times until March last year. After additional witness examinations and the conclusion of arguments, the trial was postponed in October of the same year and again in February due to changes in the presiding judge.

The rebate trial, which started around the same time, is still ongoing with witness examinations. The rebate allegations claim that former Vice Chairman Eo and two employees conspired to provide tens of billions of won to medical personnel, including general practitioners and public health center doctors, through sales representatives to promote Anguk Yakpum. According to the prosecution, they provided rebates worth approximately 8.9 billion won to 162 doctors.

During the trial, former Vice Chairman Eo has denied the charges and reportedly questioned the credibility of the evidence submitted to the court. The prosecution also appears to be focusing on proving the crime by requesting additional witnesses at the trial on the 16th. The next trial is scheduled for October 18.

Meanwhile, rulings related to doctors who received rebates are also being issued one after another. In 2019, the prosecution indicted 85 doctors whose charges were proven. In February, the Criminal Division 11 of the Seoul Western District Court (Presiding Judge Moon Byung-chan) sentenced three doctors who worked as managing doctors and public health doctors at a Seoul public health center between 2011 and 2019 to 3 years and 6 months in prison and fined them 100 million won for violating the Act on the Aggravated Punishment of Specific Crimes (bribery).