(Bloomberg) -- Japanese authorities inspected Kobayashi Pharmaceutical Co.’s factory in Osaka after the drugmaker recalled some health supplements that have been linked to deaths and hospitalizations.

Three supplements made using what is known as red yeast are suspected of containing toxic or harmful substances, the Ministry of Health, Labour and Welfare said in a statement on Saturday. The ministry started the on-site inspection this morning, it said. 

Kobayashi — one of Japan’s largest makers of health products selling everything from eye drops and skin creams to room deodorants — is battling one its biggest challenges after hundreds of consumers reported problems from using its supplements. The company said it received two more reports of deaths on Wednesday, and was working to confirm the link with the pills.

The drugmaker said this month that it would recall a cholesterol-reducing supplement that uses red yeast, as well as other products that use the ingredient. The recall is likely to cost over ¥1.8 billion ($12 million). It also plans to compensate about 680 consumers who reported health problems. 

The company continues to investigate the potential cause and link between the products and the deaths and illnesses of those who have consumed them.  

Red yeast is an ingredient that has long been used to make red rice wine and foods. The ingredient has also been marketed as a health supplement because it produces statins, which can help lower cholesterol. 

--With assistance from Sunao Imada.

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