Friday, February 9, 2007

Regulatory scandal hits Chinese drug industry

by Elaine Frei

It was announced Friday that China is undertaking a wide review of its drug industry after a former regulator was accused of taking bribes in return for approving the marketing of shoddy and counterfeit drugs that were blamed for a number of deaths.  The former director of the State Food and Drug Administration, Zheng Xiaoyu, was dismissed in 2005.  Two of his deputies are also being investigated, according to reports.  In addition, one drug manufacturer has been closed down while anti-corruption officials investigate its links to the former director.  So far, there has been no indication of whether any foreign drug companies have been implicated by the investigation.

Vice Premier Wu Yi, who was formerly health minister, has ordered that almost 170,000 drug production licenses, most of them granted while Zheng was in charge of the Food and Drug Administration, be reviewed for possible misconduct.  Among the accusations are that drug manufacturers have bribed regulators and paid off doctors and hospitals to use their products.  For example Xinfu, an antibiotic, was found to have been improperly approved.  It apparently killed at least 10 patients in 2006 before it was pulled off the market.

Wu was said to have admitted that there was inadequate supervision in the drug regulatory system, including loopholes that allowed officials to change rules for testing and approving drugs without consulting with anyone else.

 

 

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