Report finds 'inferior' drugs made by listed Chinese pharma companies

A pharmaceutical firm's production center in Kunming.
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A number of major Chinese pharmaceutical firms have been accused of producing inferior products and counterfeits with problems ranging from excessive amounts of bacteria, the presence of foreign objects, and insufficient production, prompting them to clarify or recall problem products on short notice.

The food and drug administration of Guangdong province conducted spot checks of 2,577 batches of 736 kinds of medicines in the first quarter of 2012; 215 batches of 88 drugs failed to pass the tests.

Medicines of listed pharmaceutical companies Kangmei Pharmaceutical, Huangshi Sanjeou, Shandong Sanjeou, and Taiqi Sichuan Nanchong Medicine were evaluated as producing inferior medicines.

In the wake of the publication of a related report, the share prices of Kangmei, China Resources Sanjiu Medical and Pharmaceutical — the parent firm of Huanghsi Sanjeou — and Taiqi Group all fell on July 19.

Kangmei and China Resources Sanjiu admitted mistakes, while the third firm claimed that a re-check by a drug lab showed that one of its medicines has met the new standards. Taiqi Group claims that its medicines meet standards and attributed the initial problem to a change in pH levels during transport and stocking. The company has nevertheless recalled the medicines in question.

An analyst from Southwest Securities says that the low quality of drugs in China is an issue of ethics, not a technical or management problem.