Comment author:DanArmak
03 October 2016 12:14:53AM
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They are declare >80% of "1,622 clinical trials for new pharmaceutical drugs currently awaiting approval" to be bad. That doesn't mean that they take existing drugs off the market.
One problem is that consumers might decide >80% of all previously approved drugs are bad, but they don't know which, so they can't trust any of them. Chinese pharma revenues will drop as everyone who can will use drugs imported from abroad. Gray markets providing bulk medicine imports will flourish, but the buyers who can afford to use them should beware of fraudulent merchandise and of plain misunderstandings and mistranslations.
CFDA has united with more than 25 other government agencies for a coordinated crackdown on drug producers that engage in dishonest activities. The initiative is part of the government’s contentious social credit scheme, which aims to monitor the corporate integrity of companies active in China. [...] The plan is to use these powers to more forcefully punish wrongdoers. Companies that get on the wrong side of CFDA could be cut off from government financial support and procurement programs. A negative credit score could also cause a company to be subject to more rigorous tax assessments, encounter barriers when applying for customs certificates or suffer many other difficulties intended to punish their behavior.
This is highly political. If you look at Chinese policies like the One-Child policy there was also collateral damage.
Just imagine what would happen in the US if either Clinton or Trump would say: "The IRS should be extra tough on those Big Pharma companies that are dishonest."
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Comments (18)
One problem is that consumers might decide >80% of all previously approved drugs are bad, but they don't know which, so they can't trust any of them. Chinese pharma revenues will drop as everyone who can will use drugs imported from abroad. Gray markets providing bulk medicine imports will flourish, but the buyers who can afford to use them should beware of fraudulent merchandise and of plain misunderstandings and mistranslations.
It likely wasn't an easy decision. At the same time I don't think there was trust in the trials to begin with that they could destroy.
There are approved drugs from Western companies that can be legally brought in China. I think this Crackdown focuses more on Chinese companies.
Googling brought me to an article:
CFDA has united with more than 25 other government agencies for a coordinated crackdown on drug producers that engage in dishonest activities. The initiative is part of the government’s contentious social credit scheme, which aims to monitor the corporate integrity of companies active in China. [...] The plan is to use these powers to more forcefully punish wrongdoers. Companies that get on the wrong side of CFDA could be cut off from government financial support and procurement programs. A negative credit score could also cause a company to be subject to more rigorous tax assessments, encounter barriers when applying for customs certificates or suffer many other difficulties intended to punish their behavior.This is highly political. If you look at Chinese policies like the One-Child policy there was also collateral damage.
Just imagine what would happen in the US if either Clinton or Trump would say: "The IRS should be extra tough on those Big Pharma companies that are dishonest."