China opens corruption investigation at vaccine manufacturer and holds leaders



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Changsheng Biotechnology
Co.


002680 -9.96%

has also been accused by the national drug regulatory agency of making records of production of a human rabies vaccine.

Gao Junfang,

known as "queen of vaccines" in China, has been placed in custody with other leaders suspected of crimes related to the case of rabies vaccine, the company said Tuesday. Authorities took charge of a total of 15 people in connection with the case, according to a statement from the police quoted by the state media. Changsheng Biotechnology did not respond to a request for comment and Ms. Gao could not be contacted.

The cases of Changsheng, the second-largest seller of rabies and chickenpox vaccines in China, have shaken confidence in the country's vaccine supply. "Any behavior that harms the interests of the mbades must be resolutely corrected," said the country's anti-corruption agency, promising to take other measures to protect the well-being of citizens, including the repression of corruption

. Trading in his shares would be halted Wednesday and resume Thursday.

The Shenzhen Stock Exchange said on Tuesday that it had found the company in violation of its code of conduct and that it was considering instituting disciplinary action. The exchange indicated that he previously reviewed the company's books and found abnormal research and development expenses compared to competitors. Changsheng achieved a turnover of 1.5 billion yuan ($ 221 million) last year, up 52% ​​over the previous year, said the company. ;business. The company, based in the Jilin industrial center in northeastern China, was censored this week after revealing that local authorities in the province had discovered that its vaccines protect against diphtheria. pertussis and whooping cough. and tetanus did not meet safety standards.

The doses were sold mainly to the government of the eastern province of Shandong. This month, the company sponsored a flu prevention conference in Shandong, attended by more than 400 government officials, according to a local government announcement.

The company spent 582 million yuan in 2017, including promotion and sponsorship meetings.

Corruption has long plagued China's medical system, including the red envelopes filled with money that patients are giving doctors to better support payments made by pharmaceutical companies to secure sales. Government officials have been convicted for accepting payments to approve vaccines.

The Changsheng case recalled memories of a 2016 scandal involving inadequate storage of vaccines. The main suspect in this case had already been found guilty of illegal sales of vaccines. President

Xi Jinping

Prime Minister

Li Keqiang

promised this week to better control China's vaccine supply, echoing Mr. Li's similar wishes two years ago.

One of the challenges is the lack of specialized professionals in quality badurance.

Scott Wheelwright,

"The people I work with do things well, but often they do not know how to do it." "The biopharmaceutical industry is growing at a rate of 15% per year, which means that capacity needs to double every five years."

The vaccine scandal has swept the social media in recent days, angry parents have come to the rescue. inquiring about why the government did not do more to protect the children

.The Francisco Birth Tourism Agency began offering a $ 500 package, including food and breakfast. Parents who wish to vaccinate their children in the US His owner said Tuesday that he had received dozens of inquiries.Families who wanted to come to the United States just for inoculation did not have to be vaccinated. were not too big, "said the owner. "But I think that after that, there may be families willing to spend a lot of money to have safe vaccinations."

-Te-Ping Chen and Fanfan Wang, with Preetika Rana in Hong Kong

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