CHINA LEX PHARMA LAW NEWSLETTER
Vol. 1, No. 28 -December 14, 2000
TOPICS THIS ISSUE:
- Advertisement Ban on Four Types of Drugs
- China's Taikang Life Insurance Financed
- Shanghai Government Initiates Pharma Bidding Process
- Sohu Teams Up With 999
Advertisement Ban on Four Types of Drugs
China's State Drug Administration (SDA) recently issued a circular to all local drug administrations requiring them to reexamine drug advertisements previously approved by them to ensure that they are in compliance with pertinent regulations in this area. The SDA emphasized that all advertisements for medicine must have the approval of the appropriate pharmaceutical authorities.
No advertisements are allowed for four specific drugs, according to the SDA. These include drugs used to treat cancer and AIDS, medicine still in trial production and/or manufactured by hospitals, as well as anesthetics and ataractics.
The administration also prohibits the advertisement of anti-drug addiction medicine and medicine used to treat sexual dysfunction.
Legal advertisements will be permitted for publication in 16 major Chinese media, including China Central Television (CCTV). After the advertisement has been approved, its contents and the medicine’s indications and packaging cannot be changed.
The SDA has already taken steps to curb illegal pharmaceutical advertising: in late November, the SDA exposed six domestic pharmaceutical companies whose advertisements held illegal content or whose content had been changed after approval.
(Source: Beijing Youth Daily)
China's Taikang Life Insurance Financed
Taikang Life Insurance Co., China’s fifth largest life insurance company, has received financing from five foreign companies. The investment comes after government approval of increased foreign investment in domestic insurance companies earlier this year. The result has been an increase in Taikang’s capital from RMB 600 million (US $72.46 million) to RMB 2 billion (US $241.55 million).
In 1999, the China Insurance Regulatory Commission approved the issue of 20% of Taikang’s one billion shares to foreign investors, opening the door to foreign investment in the Chinese insurance industry. Switzerland’s Winterthur Life and Bank Leu, Singapore’s Winterthur Life, the World Bank International Finance Corporation, and Softbank of Japan have risen to the occasion with their investment in the company.
Taikang acts as a domestic insurance agent, providing group and individual insurance, and sells personal accident, medical and life insurance policies. It has also been approved to offer travel insurance to tourist groups.
(Source: ChinaOnline)
Shanghai Government Initiates Pharma Bidding Process
As part of its extensive health care reforms, the Shanghai government has instituted an open bidding system for hospital medicine purchases. The bidding is intended to stop irregular purchasing practices in city hospitals, such as commissions given to hospital purchasers by drug salesmen and fees paid to doctors for prescribing certain medicines. Pharmaceuticals purchased by hospitals in the bidding system will be restricted to high-quality medicines at reasonable prices. The entire bidding process will be open to the public.
Reforms to Shanghai’s health care system have come about as a response to consumers’ complaints of high medical bills and the high cost of medicine in particular. Through the bidding system and a proposed city-wide health insurance program, government officials hope to reduce the cost of medicine and medical services. The ultimate goals of the reforms are to improve the overall quality of medical services, increase competition in the supply and delivery of medicine, and to more fairly distribute the cost of medical care.
(Source: english.eastday.com)
Sohu Teams Up With 999
Chinese online users will soon have a new source for health care information and products. The SOHU Special 999 Health Center is jointly operated by SOHU.com, one of China’s leading Internet portals, and 999.com.cn, one of the country’s top-ranking pharmaceutical websites.
Along with a health supermarket offering over-the-counter medicine, exercise equipment and massage products, the site will host a news center, health guides, and pharmaceutical journals.
999.com.cn is the online division of The 999 Group, a Shenzen-based company that has pioneered business-to-consumer medical e-commerce in China. The website provides a wide range of medical advice and services to online users. The co-branding project will bring the 999 Group’s professional services to the screens of more than 10 million registered SOHU.com users.
(Source: SOHU.com, AsiaPulse)
Lehman Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
(formerly known as the L&A Law Firm)
Suite 188, Beijing International Club
21 Jianguomenwai Dajie, Beijing 100020 China
Tel.: (86)(10) 6532-3861
Fax: (86)(10) 6532-3877
mail@chinalaw.cc
http://www.chinalaw.cc/
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