China’s Regulators Flag ‘Systemic Corruption’ Risk in Drugs Sector

Audit uncovers Guangdong pharmaceutical business rife with misconduct, from drug sales and promotion to medical equipment procurement in hospitals, a report obtained by Caixin reveals

China’s top graft buster announced a year-long clampdown on corruption in the drug sector, targeting areas such as the production, sales, use and reimbursement of drugs, as well as hospitals chiefs. Photo: VCG

Chinese authorities have uncovered the risk of “systemic corruption” in Guangdong province’s pharmaceutical sector, including misconduct by drugmakers in sales and promotion activities, medical equipment procurement in local hospitals, and ethical concerns involving partnering health institutions, an official audit report obtained by Caixin has revealed.

A team from the National Audit Office, the country’s top audit watchdog, conducted a special investigation between May and July into the provincial sector’s production, sale and use of drugs and medical consumables.