Pharmally Pharmaceutical Corp. became involved in a scandal over allegations of overpriced medical supplies it supplied to the Philippine government for the latter's response to the COVID-19 pandemic. The Blue Ribbon Committee of the Senate of the Philippines launched an investigation into the matter and uncovered other issues, such as the supplied face shields' alleged substandard quality and how the company was able to secure a contract worth billions of pesos despite being founded only in 2019 with a small paid-up capital.

Several Pharmally officials were questioned by the Senate Blue Ribbon Committee. President Rodrigo Duterte's adviser Michael Yang was also among those whose role was probed. However, Duterte later barred Cabinet officials from participating in the hearings.

The issue led to a word war between President Duterte and Senator Richard Gordon.

In 2023, the Office of the Ombudsman found government executives guilty of administrative charges and recommended the filing of graft charges against several government and Pharmally executives.

Pharmally Pharmaceutical Corporation, simply known as Pharmally, is a supplier of medical equipment including face masks and face shields. According to the Securities Exchange Commission (SEC), the company was established on September 4, 2019. It had a paid-up capital of ₱625 thousand paid-up capital.

Based on its SEC documents, its headquarters is at the Fort Victoria Tower B in Fort Bonifacio, Taguig. Its chairman is Huang Tzu Yen, a Singaporean national who controls 40 percent of the company. The rest is held by Filipinos. Twinkle Dargani, who is the company president with 10 percent ownership; Mohit Dargani, the corporate secretary and treasurer with 30 percent ownership; Linconn Ong and Justine Garado who are both company directors. Ong has 16 percent stake while Garado has 4 percent.

Nine contracts worth ₱8.68 billion were awarded to Pharmally despite its small paid-up capital. These were signed by Lloyd Christopher Lao, Department of Budget and Management (DBM) Procurement Service (PS) Officer in Charge since January 2, 2020, in which Pharmally would supply the government supplies for the COVID-19 pandemic including personal protective equipment, surgical masks, face shields and RT-PCR test kits.

The government's supply contracts for the COVID-19 pandemic response were funded under the Bayanihan to Heal as One and Bayanihan to Recover as One Act (Bayanihan 1 and 2 Acts). From March 2020 to September 2021, the Philippine Center for Investigative Journalism citing data from the Philippine Government Procurement Policy Board (GPPB) and the Philippine Government Electronic Procurement Service (PhilGEPS) reports that national and local government agencies awarded ₱10.85 billion worth of supply contracts to various companies. Pharmally were awarded the most contracts worth ₱18.8 billion or 29 percent of all the contracts given during the said period. Xuzhou Construction Machinery Group is the company with the second most awarded contracts. It had contracts worth ₱1.9 billion. The third most awarded company was Phil Pharmawealth, Inc. with contracts worth ₱1.81 billion.