On September 15, 2023, health news emerging from China highlighted several key developments in the medical and pharmaceutical industries that are worth noting.
**Industry Highlights:**
**Anhui Expands Traditional Medicine Procurement:**
On September 9, Anhui Province’s Huangshan Medical Insurance Bureau unveiled a draft for the centralized procurement of traditional Chinese medicine (TCM) for 2024. This initiative marks a significant milestone as it includes several over-the-counter TCM products and exclusive varieties for the first time. The Anhui Provincial Pharmaceutical Joint Procurement Office is currently seeking public feedback on the draft until September 22. The procurement plan encompasses 18 product categories and includes 35 distinct TCMs, such as Shenzhi Jiangtang and Siberian Ginseng, among other well-known remedies.
**U.S. House Passes Biosecurity Bill:**
On the evening of September 9, the U.S. House of Representatives voted on the Biosecurity Act (H.R. 8333), passing it with a vote tally of 306 in favor, 81 against, and 44 abstentions. The act, citing “national security,” imposes restrictions on partnerships between U.S. federal agencies and certain biotech firms, explicitly naming five Chinese companies, including BGI Group and WuXi AppTec.
**Five Departments Push for Comprehensive TCM Coverage:**
On September 13, five national departments in China, including the National Administration of Traditional Chinese Medicine and the Ministry of Health, jointly released guidelines aimed at fostering the high-quality development of county-level TCM hospitals. The ambitious goal is for all county-level TCM hospitals to meet the criteria for a designated second-level hospital by 2030, with an interim target of 80% achieving this by 2025.
**COPD Added to Public Health Service Projects:**
The National Health Commission also announced on September 13 that Chronic Obstructive Pulmonary Disease (COPD) has been included in the basic public health service projects. This follows the prior recognition of hypertension and diabetes, making COPD the third chronic disease to receive formal acknowledgment.
**Propolis Oral Film Converts to Non-Prescription:**
On September 14, the National Medical Products Administration declared that propolis oral films would transition from a Class A non-prescription drug to a Class B non-prescription drug. This change aims to enhance public access to this medication.
**Corporate News:**
**Zhendong Pharma Faces Arbitration Claim:**
On September 9, Zhendong Pharmaceuticals disclosed that its former subsidiary, Langdi Company, is pursuing arbitration to claim 1.467 billion yuan in damages due to a contractual dispute over commissioned production. Zhendong acquired Langdi in 2016 for about 2.65 billion yuan and later sold it in 2021 for more than 5 billion yuan.
**Jingjie Bio’s IPO Termination:**
On September 11, Jingjie Biotechnology revealed that it, along with its sponsor CITIC Securities, has retracted its IPO application, effectively halting its listing efforts after being approved in January 2023. The company focuses on proteomics technology for drug development and clinical diagnostics.
**Kangzhi Pharma Estimates Typhoon Damage at 30 Million:**
On September 11, Kangzhi Pharmaceuticals reported damages estimated at around 30 million yuan to its production facility in Haikou due to Typhoon Mocha. The company is working to restore water and electricity services and is currently inspecting equipment to resume production.
**Drug and Device Approvals:**
**Bu Chang Pharma’s Medication Approvals:**
On September 10, Bu Chang Pharmaceuticals announced that its subsidiary, Shandong Danhong Pharmaceutical, received approval for Levetiracetam extended-release tablets. Additionally, Tonghua Guohong’s injection of Fasudil Hydrochloride also gained approval. Levetiracetam is utilized for treating partial-onset seizures in patients aged 12 and older.
**Kangnuo’s Innovative Antibody Approval:**
On September 12, Kangnuo’s new drug, Supalimumab injection, received market approval for treating moderate to severe atopic dermatitis in adults who are inadequately managed by topical therapies. This approval marks it as the first domestically approved IL-4Rα antibody medication.
**Hengrui Pharma’s Application Accepted:**
On September 13, Hengrui Pharma announced that its subsidiary, Suzhou Shengdiya Biopharmaceutical, had its application for the injection of Rizankumab accepted for priority review by the National Medical Products Administration.
**Public Sentiment Alerts:**
**Investigation into Former Hospital Director:**
On September 10, reports surfaced that He Shuming, the former party secretary of Xiaolan People’s Hospital—recognized as China’s first town-level “three A” hospital—is under investigation for serious disciplinary violations. He had been with the hospital since 2002 and became its director in 2011.
**Ruizhi Pharma Receives Warning from Regulatory Authority:**
On September 13, Ruizhi Pharmaceuticals announced it had received a warning letter from the Guangdong Securities Regulatory Commission over issues of non-compliance in goodwill impairment testing and inadequate internal controls, which have affected the accuracy of their financial reports.
In summary, the past week yielded significant developments in China’s healthcare sector, encompassing regulatory changes, corporate disputes, and notable approvals in pharmaceuticals and public health initiatives.
About the author