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China to Tighten Administration of Pharmaceutical Firms
China will accelerate the reorganization of its pharmaceutical firms and eliminate redundant construction, Zheng Xiaoyu, director of the State Pharmaceutical Administration, said at a national pharmacy symposium recently.
So far, most of the pharmaceutical firms in China are small or medium-size, and due to an insufficient capacity for technological innovation and poor management, 98 percent of the overall products are just imitations, according to the director.
Many firms have been producing the same medicine, which has inevitably caused the structural redundancy in the pharmaceutical sector, and consequently, some firms manage to lower cost at the sacrifice of quality, said Zheng, adding that this in return has deteriorated the competitive power of this industry as a whole.
In order to eliminate the firms with inadequate technology and yield, China plans to introduce the GMP system, where certain standards will be set to measure pharmaceutical firms. Those that cannot meet the GMP standards are subject to being closed or suspended.
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