First company banned from China’s centralised drugs procurement programme after it fails to honour contract
- Authorities to tighten the criteria for pharmaceutical companies that want to take part in the centralised drugs procurement programme
- North China Pharmaceutical is the first drug maker in the programme to renege on its contract
Chinese authorities vowed to tighten scrutiny of pharmaceutical companies, after one of the tender winners in the centralised drugs procurement programme reneged on a supply contract.
The office in charge of the centralised drugs procurement programme on Tuesday also banned North China Pharmaceutical from bidding in the bulk-buying initiative for nine months until next May.
The department said that henceforth it will carefully vet a company’s track record and credibility before allowing it to take part in the tender programme.
“It is the responsibility of pharmaceutical companies to supply the agreed quantity of medicines at the agreed prices,” a statement from office said. “They should avoid low bids if they cannot supply.”
01:14
Archaeologists in China say they’ve found the earliest example of herbal medicine in imperial tomb
Shanghai-listed North China Pharmaceutical was contracted to supply Ibuprofen sustained release capsules in Shandong province, but it stopped supplies from August 11, blaming it on the lack of capacity and improper internal management.
