Hi Julie,
If the dog is on Qing Ying Tang, it may be keeping him a little on the Damp side. An aggravation with cyclosporine is something we would expect to see in Damp animals.
If you're sure he's Damp, he may do better on modified Long Dan Xie Gan Tang, which includes half of Si Miao San, a couple of Blood movers and coolers, and some herbs to dispel Wind Damp. If the pulse is superficial and the paws are hot, this is a way to go.
If the pulse is deep, then San Ren Tang might be a better choice. Also, if there is ANY aggravation from antibiotics or ketoconazole (e.g. loss of appetite or loose stools), then modified Wei Ling Tang is a better choice.
Generally Damp animals with skin problems respond to one of these three formulas.
Hope that helps,
Steve