By Peter Landers 

TOKYO--Health authorities ordered the Japanese unit of Novartis AG to shut down most operations for 15 days in March, saying the drug maker failed to report side effects from its products in a timely fashion.

The order by Japan's Ministry of Health, Labor and Welfare, issued Friday, said Novartis Japan must halt production and sale of its drugs from March 5 to March 19. Five drugs were excluded from the order because of the potential harm to patients if supplies fell short.

The ministry said Novartis Japan failed to report 3,264 cases of side effects involving 26 drugs within the period required by law. It said the case was the first time the ministry had issued a suspension over failure to report side effects.

Novartis Japan said it accepted the punishment. It apologized to patients and doctors for "causing trouble and worry." The company said that after reviewing the side-effect reports, it didn't find any that would necessitate changing safety information on drug labels.

The company said it has bolstered education of employees to ensure that safety reports are submitted properly.

The suspension is the latest blow to the Swiss drug maker's business in Japan. Last July, prosecutors brought charges against Novartis Japan and a former employee related to allegations that data in a clinical trial were falsified. Novartis said at the time that it hadn't found evidence of willful manipulation or falsification of data. In April 2014, Novartis replaced its top management in Japan.

Write to Peter Landers at peter.landers@wsj.com

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