Suspicion pharmaceutical company prosecuted by inflating COVID-19 effect

Officials from pharmaceutical companies suspected of inflating their stock prices as if leukemia treatments were effective in treating COVID-19 have been handed over to the prosecution.

The Seoul Metropolitan Police Agency's financial crime investigation unit sent two co-representatives of Ilyang Pharmaceutical and Ilyang Pharmaceutical corporation accused of violating the Capital Markets Act without detention.

They are accused of manipulating stock prices by releasing a press release in 2020 that said their leukemia treatment was effective in treating COVID-19.

At that time, Ilyang Pharmaceutical's stock price rose by more than 80,000 won in four months after distributing the press release, and a police investigation found that the treatment did not have a superior effect on treating COVID-19 compared to other drugs.