Fri, Apr 06, 2018 - Page 3 News List

Counterfeit drug maker given 30 months in prison

By Jason Pan  /  Staff reporter

The Pingtung District Court has found Sanyang Pharmaceutical Co (三陽製藥) president Chang Chao-lin (張朝霖) guilty of manufacturing counterfeit medicine, handing him a 30-month sentence and a fine of NT$1 million (US$34,308).

The court also convicted Cheng Chien-chu (鄭建助), owner of Shan Hohsing Pharmaceutical Co (上禾興藥業), a subcontractor for Sanyang, giving him a 22-month sentence and a fine of NT$800,000.

Fourteen employees of the two companies were either acquitted or received suspended sentences.

The sentences can be appealed, as it is the first ruling.

Pingtung prosecutors began investigating the case in 2013 and found that Chang had been subcontracting most of the production of his company’s traditional Chinese medicine to Shan Hohsing, which does not have a drug manufacturing license and whose facilities consisted of several metal huts in a rural area.

Prosecutors found that while Shan Hohsing registered its office building in Pingtung City as its main production site, actual manufacturing was carried out in an underground factory consisting of several metal huts in a rural area.

When investigators raided the factory, they found it to be “dirty, messy and unsanitary.”

They later discovered that the site used to be pigpens.

Prosecutors indicted the 16 in January 2015, saying they had made tens of millions of New Taiwan dollars in the previous three years alone.

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