The central government yesterday revoked the licence of the state-owned Shanghai Hualian Pharmaceutical Company after leukaemia drugs it produced were found to be contaminated and could cause leg pains and partial paralysis in some patients.
The State Food and Drug Administration posted a notice on its website, saying the police had detained people responsible for the incident.
It also said Shanghai's city government and Hualian's parent company, the Shanghai Pharmaceutical (Group) Company, had set up a group to sort out compensation for patients.
The administration's notice said the leukaemia drugs were found to have contained vincristine sulfate, a chemical substance not supposed to be used in making the medicine.
It said some Hualian executives 'organised a systemic cover-up for their violations of production standards during police investigation'.
Hualian would be given the maximum fine, around 30,000 yuan, for breaching the rules.