CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2 , No.21- August 21, 2001
TOPICS THIS ISSUE:
- International Hep B Clinical Trials Taking Place in Chinese Cities
- New Tax Rules Provide More Advertising Funds
- Doctors Receive Stronger Protection in Chinese Hospitals
- Huge Market for Weight-Reducing Drugs in China
International Hep B Clinical Trials Taking Place in Chinese Cities
Working with scientific research centers in the United States and Canada, fifteen qualified Chinese hospitals in Beijing, Shanghai and Guangzhou are participating in a worldwide clinical trial for hepatitis B treatment.
Professor Luo Kangxian from Nanfang Hospital in Guangzhou pointed out that the trials are administrated under the International Good Clinical Practice (GCP) standards in order to meet worldwide scientific standards, including those of the U.S. Food and Drug Administration.
The Swiss regulatory body IKS, has permitted Roche to market its drug Pegasys for the treatment of chronic hepatitis C, which provides the hope of a cure for more than 170 million people infected with the virus worldwide, of which approximately 13 million reside in China.
"As the number one recruitment country, the success of this three-phases trial for hepatitis B relies heavily on China due to the high prevalence of the disease," said Dr. Gunther Foster, a medical expert from Switzerland.
China faces a serious epidemic of hepatitis. Roughly 120 million Chinese carry the HB virus.
Every year China allocates between RMB 30-50 billion (US $3.6-6 billion) for the research and treatment of various types of hepatitis.
(Source: Xinhua News Agency)
New Tax Rules Provide More Advertising Funds
The State Administration of Taxation of China will relax restrictions on corporate advertising expenses for certain industries.
On August 13, it was announced that the before-tax deduction standard for the pharmaceutical, food-processing, daily-use chemical, electrical home appliances and telecommunications industries' advertising would be adjusted.
According to the new limitations, an enterprise in any of the aforementioned industries will be permitted to deduct advertising expenses up to a maximum 8 percent of their sales revenue.
The new limitations also allow high-technology, new-technology and venture capital firms, in stages of early development, to deduct all advertising expenses or raise the percentage to be deducted from the previous restriction of only 2 percent.
In the past, according to the Before-Tax Deduction Methods for Corporate Income Tax, taxpayers were restricted to only deducting expenses for advertising to only 2 percent of their annual business revenue. This was hoped to reduce the advertising campaigns of many enterprises thought to be too aggressive or excessive.
However, the past 2 percent limit was thought to be too restrictive. Presently, drugs, food, telecommunications, daily-use chemicals and electrical home appliances make up the majority of advertisements in the mass media. The advertising investment made by these industries usually exceeds 2 percent of their annual sales revenue.
With the new relaxing of the restrictions, it is hoped that the individual needs for growth and development of specific industries will be met while the mass-media sector will also enjoy greater development.
(Source: ChinaOnline)
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Doctors Receive Stronger Protection in Chinese Hospitals
Recently in Chinese hospitals, a public announcement trying to ensure the safety of doctors has been distributed. Owing to the constant reoccurrence of relatives of patients causing bodily harm to doctors, The Ministry of Health and the Ministry of Public Security published a circular with the goal of preserving order in medical institutions.
The circular explains that it is not permitted to disturb the normal order of medical institutions for any reason. While the circular also provides that patient's legal rights should be protected, it maintains that the destruction of hospital property and endangering the life of doctors is not allowed. It encourages relationships of mutual understanding and trust between medical practitioners, their patients and families.
The announcement described eight sub-articles that constitute criminal activity, and anyone who is found to breach the regulations will be prosecuted and criminally liable.
(Source: Health News)
Huge Market for Weight-Reducing Drugs in China
Market analysts believe that the national domestic market in China for weight-loss drugs is roughly US $750 million a year. The market in each province is estimated to be approximately US $25-38 million.
In Shanghai, a recent survey discovered that out of every ten residents, three regularly use assorted weight-reducing or healthcare goods. This means that in Shanghai alone, the market could be as high as US $100 million a year for slimming products.
The analysts believe that over the next two years, as the city's market develops and competition becomes fiercer with new products continuously emerging, the high turnover and return will gradually decrease.
(Source: Pharmanews)
Lehman Lee & Xu
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The China Lex Pharma Law Newsletter is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
