Reuters AlertNet Lite - China drug officials banned from medic firm stakes

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China drug officials banned from medic firm stakes

28 Feb 2007 04:21:41 GMT
Source: Reuters

BEIJING, Feb 28 (Reuters) - China has banned officials from the government's drug watchdog from investing in medical companies to prevent corruption and help clean up the industry, Chinese media reported on Wednesday.

The move follows the sacking of a former head of the State Food and Drug Administration on suspicion of taking bribes.

The use of fake and poor-quality products has killed dozens of people in China in recent years and has sparked widespread public fury about food and drug safety.

"People working at medical supervision departments will not be allowed to hold any stocks or shares in medical enterprises in the future," the Beijing News said, citing current watchdog head Shao Mingli.

"Anyone who opposes the regulations, will be dealt with severly."

The link between pharmaceutical companies owned or administrated by the national or local drug and food watchdogs must also be severed, Shao added.

Chinese media have blamed the frequent scandals on businesses obsessed with making profits and on lax official supervision.

Last month, China suspended the production and sale of an intravenously injected blood-based drug used to treat immune system deficiencies after users were feared to have contracted hepatitis C.

The drug watchdog banned a company in eastern Anhui province last October from producing injected antibiotics to treat bacterial infections after the drug was linked to the deaths of six people.

The government had vowed to step up its battle against fake and dangerous drugs by reviewing production licences for 170,000 drugs, focusing on those given out between 1999 and 2002, Chinese media said earlier this month.

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Last updated:Wed Feb 28 04:24:10 2007