New market regulations are implemented!

In 2017, after the new version of the Anti-Unfair Competition Law was reviewed by the National People’s Congress, the Shanghai Administration for Industry and Commerce responded quickly and announced the punishments for three commercial bribery cases in the pharmaceutical field, including representatives of foreign-funded pharmaceutical companies, Squibb, Tai Ling Pharmaceuticals, and Casey Pharmaceuticals of Italy consulting (Shanghai) Co.

In 2018, nine ministries and commissions including the National Health Commission and the National Medical Insurance Administration jointly issued the "Key Points for the Special Treatment of Improper Practices in the Field of Pharmaceutical Purchase and Sales and Medical Services in 2018".

In September 2020, the National Medical Insurance Administration issued the "Guiding Opinions of the National Medical Security Administration on Establishing a Credit Evaluation System for Pharmaceutical Prices and Recruitment", clearly establishing a list of credit evaluation catalogs, establishing channels for recording untrustworthy information reports, conducting credit ratings for pharmaceutical companies, Disposing of untrustworthy breaches at different levels, encouraging pharmaceutical companies to restore credit, and other related content

According to the facts of the case as determined by the court’s judgment or the administrative punishment of the relevant law enforcement agencies, in the past three years, within the province, there have been acts of giving kickbacks and other medical commercial bribery to medical institutions, centralized procurement institutions and their staff at all levels and in the same case.

Especially serious

According to the facts of the case as determined by the court’s judgment or the administrative punishment of the relevant law enforcement agencies, in the past three years, within the province, there have been acts of giving kickbacks and other medical commercial bribery to medical institutions, centralized procurement institutions and their staff at all levels and in the same case.

Among the cases of false issuance of value-added tax invoices investigated and dealt with by the taxation authorities in this region, the party who obtained the false value-added tax invoices was the party who obtained the false value-added tax invoices

Purging the order of the pharmaceutical market

Article 6 Anyone who commits the following illegal acts in the fields of drugs, medical devices, and cosmetics, and falls under the circumstances specified in Article 2 of these Measures, shall be included in the list of serious violations of untrustworthiness:

  (1) Production and sale of counterfeit and inferior drugs; illegal production and sale of drugs (including vaccines) for which the country has special management requirements; production, import, and sale of drugs (including vaccines) that have not obtained drug approval documents;  

  (2) Production and sale of unregistered Class II and Class III medical devices; 

  (3) Production and sale of cosmetics with illegally added substances that may harm human health;  

  (4) Other illegal acts that violate the laws and administrative regulations on drugs, medical devices, and cosmetics, and seriously endanger the health and life safety of the people

In fact, in the first half of this year, the central government put "strengthening anti-monopoly and preventing the disorderly expansion of capital" as the focus of this year's work, and stated that it would "enrich the anti-monopoly supervision power and enhance the authority of supervision
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" On August 30, the Central Committee for Comprehensively Deepening Reforms held its 21st meeting and reviewed and approved the "Opinions on Strengthening Anti-monopoly and Deepening the Implementation of Fair Competition Policies
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What is clear is that the country will increase the supervision and law enforcement of pharmaceutical companies in the next step, and heavy supervision in the pharmaceutical industry will become the norm in the future
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Industry analysis believes that the pharmaceutical industry has begun to transition from the traditional "reserve price agency + commercial billing" model to the "high opening and high return + business reform + two-invoice system" model.
Enterprises not only need to pay attention to the price declaration rules during the price declaration process.
To avoid stepping on the “red line” of rules, it is also necessary to continuously improve the level of compliance operations and jointly create a fair and just business environment for the pharmaceutical industry
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