Kobayashi Pharmaceutical Co apologised for five people who died and 114 who were taken ill after ingesting its pills made using red yeast, a purplish-red mould that is commonly grown on rice and used in Asian cooking.
 
The maker of health supplements and other drugstore products will compensate roughly 680 consumers who reported health problems after using the product, including the cost of medical treatment, president Akihiro Kobayashi said at a news conference in Osaka, where the company is based. 

Kobayashi is one of Japan’s biggest makers of health products, selling everything from eye drops and skin creams to room deodorant and cotton balls, with a market value of ¥396 billion . A week ago, the company announced a recall of a cholesterol-reducing supplement using red yeast, as well as other products using the ingredient. Kobayashi’s stock has declined 16% since then. 

“We deeply regret that this has become a social issue,” Kobayashi said. 

Red yeast, whose scientific name is monascus purpureus, has been used for more than a millennium to make red rice wine and foods, and also as a pigment, including adding a red hue to Peking duck. Because it produces statins, which help lower cholesterol, it’s been marketed as a health supplement. 

Kobayashi said it received the first report of a case on Jan 15. Asked whether its response was too late, the president said he would make a sincere effort to look into the matter. The number of telephone lines to handle inquiries is being expanded, and will reach 280 by April 4, he added.

The pharmaceutical maker is looking into the reasons behind the illnesses and deaths, and said that it has identified the probable responsible substance and will speed up efforts to provide information to the relevant health authorities. 

Because Kobayashi supplies red yeast to other companies, other products are also being impacted. Convenience-store chain FamilyMart Co recalled three products, including bento lunchboxes. The Ministry of Health, Labour and Welfare said Kobayashi supplied the ingredient directly to 52 companies, which in turn ended up in products at 173 businesses.

The issue has impacted people outside of Japan. A Taiwanese woman in her 70s developed kidney failure after taking supplements made with Kobayashi’s ingredient, United Daily News reported. DHC, a supplements provider, also suspended sales and recalled products sold in Taiwan.
 

  - Bloomberg