By hannover-web.com On October 20, China’s National Healthcare Security Administration (NHSA) issued a notice aimed at standardizing the management of external prescriptions for medical insurance drugs. This development comes as the country has successfully extended its free HPV vaccination program, reaching approximately 40% of eligible girls nationwide. In other news, Nanjing Pharmaceutical’s refinancing proposal has received approval from the Shanghai Stock Exchange’s listing committee, and Baiyu Pharmaceutical has secured an exclusive licensing agreement with Novartis for an in-development anti-tumor small molecule drug. Additionally, Qianhong Pharmaceutical plans to invest 390 million yuan to acquire Fangyuan Pharmaceutical as part of its bankruptcy restructuring process. Furthermore, several listed pharmaceutical companies, including Shanghai Pharmaceuticals, are involved in a significant insurance fraud case. Multiple pharmaceutical and biopharmaceutical firms have also reported impressive performance forecasts for the first three quarters of the year.
In industry news, the NHSA announced a focused initiative to combat fraud related to external medical insurance prescriptions. As of October 16, the agency has mandated local insurance departments to incorporate the inspection of designated medical institutions and retail pharmacies into their fraud prevention efforts. By the end of December 2024, there will be targeted inspections of prescriptions for outpatient chronic diseases, special disease protections, and high-cost drugs that pose substantial fraud risks.
On the public health front, Shen Haiping, the director of the Women and Children’s Division of the National Health Commission, revealed on October 18 that the free HPV vaccination initiative now covers approximately 40% of eligible girls as part of a broader strategy for cervical cancer prevention and early detection.
In a significant regulatory move, the former director of the Anhui Food and Drug Administration, Liu Zilin, was expelled from the Communist Party and is under investigation for serious violations of party discipline as announced on October 15. Liu, who has held various roles in the health sector since the 1970s, is facing scrutiny following his involvement in the pharmaceutical industry.
On the corporate front, Nanjing Pharmaceutical’s refinancing plan received approval from the Shanghai Stock Exchange on October 16, which is anticipated to bolster its capital raising efforts. In a notable partnership, on October 17, Baiyu Pharmaceutical signed a lucrative licensing deal with Novartis for a small molecule anti-cancer drug, involving an initial payment of $70 million and potential milestone payments that could total up to $1.1 billion.
Additionally, on October 18, Qianhong Pharmaceutical announced its intention to acquire Fangyuan Pharmaceutical for 390 million yuan, positioning itself advantageously within the local market.
In financial updates, Pien Tze Huang reported an 11.73% increase in net profit compared to last year, while Huayuan Biological saw a remarkable 62.13% rise in its net profit for the same period. ProPharma reported a modest 2.15% net profit increase, and Jianfan Biological boasted an impressive 86.86% growth in its net profit.
Regarding public sentiment, on October 14, the NHSA disclosed a substantial insurance fraud case involving four pharmacies in Harbin, resulting in concerns about widespread fraudulent prescription practices. Among the implicated are three pharmacies affiliated with publicly listed companies. Additionally, Anhui’s drug regulatory authority announced penalties against three companies for producing substandard medicines, reflecting ongoing efforts to uphold industry standards.
Finally, on October 15, Wuzhou Medical disclosed that its chairman, Huang Fan, has been warned for failing to disclose a shareholding trust, demonstrating the increased regulatory scrutiny within the sector.
