INDEPENDENT NEWS

Health ministry prosecutes Promisia Integrative over Arthrem

Published: Mon 11 Feb 2019 04:50 PM
By Jenny Ruth
Feb. 11 (BusinessDesk) - Listed dietary supplements company Promisia Integrative is being prosecuted by the Ministry of Health, which claims its joint health supplement Arthem is an unlicensed medicine and that some marketing activities have breached the Medicines Act 1981.
The company told the NZX there are nine charges, all based on the ministry’s view that Arthrem has been sold and advertised for therapeutic purpose to patients, often with arthritis, and is thus a medicine.
The prosecution comes on top of warnings a year ago from Ministry of Health regulatory body Medsafe that Arthem may cause liver damage.
In a statement to NZX about the recent prosecution the company says: “Promisia disputes all charges and will defend them vigorously.”
“Arthrem is not a medicine. It is a dietary supplement. Promisia has always ensured that its advertising is approved under the dietary supplement category,” it says, adding that it has used the Therapeutic Advertising Pre-vetting Service to this end.
“Promisia will update the market as this matter progresses but notes that further information may be affected by the legal process.”
Penny dreadful stock Promisia, which in the five years since it listed has never traded above 6 cents a share, raised $1.35 million from a 3-for-1 rights issue over the Christmas/New Year period. At that time the family trust of major shareholder and director Tom Brankin kicked in another $250,000, increasing its stake to 51.3 percent. This provided sufficient working capital for it to remain in business.
Promisia’s own health has been in doubt since February last year when MedSafe warned Arthrem may cause liver damage, a warning repeated in November when MedSafe said that 25 cases of liver toxicity had been reported to the Centre for Adverse Reaction Monitoring by Sept. 30.
Promisia claims Arthem is not behind those adverse reactions. Instead, the company says they are caused either by higher dose competing products, or by other drugs or supplements.
A rival product, Go Arthri-Remedy 1-A-Day, was withdrawn from sale after the February Medsafe alert, but Promisia’s product is still sold in about 1,000 New Zealand pharmacies and about 900 pharmacies in Australia.
The Go Arthri-Remedy product contained twice the dosage of Promisia’s product.
Promisia shares dropped 0.1 of a cent to 0.1 cents, matching the rights issue offer price. They haven't traded above 1 cent in more than a year.
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

First prosecution for failing to identify a problem gambler
By: Department Of Internal Affairs
New Report: Climate policy needs a landscape approach
By: Parliamentary Commissioner For The Environment
An end to unnecessary secondary tax
By: New Zealand Government
Boeing 737 Max Aircraft Operations Temporarily Suspended
By: Civil Aviation Authority
Govt rejects Upton proposal to restrict use of trees
By: BusinessDesk
James Shaw rejects change to forestry offset for CO2
By: RNZ
Separating greenhouse gases in climate policy -Experts React
By: Science Media Centre
Climate Change Minister thanks the environment watchdog
By: New Zealand Government
ETS revamp: averaging accounting for forests
By: New Zealand Government
PCE report is challenge to climate change thinking
By: Federated Farmers
Dairy and fertiliser lobbies will celebrate over PCE report
By: Greenpeace New Zealand
Failing to see the forest for the trees
By: BusinessNZ
PCE report an endorsement for native trees – Project Crimson
By: Project Crimson
PCE Report needs clarity from government
By: NZ Forest Owners Association
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media