LS&HC Horizons 2023 - Flipbook - Page 55
Hogan Lovells | 2023 Life Sciences and Health Care Horizons | APAC
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Chinese government’s strengthened enforcement against misconduct
involved in purchase and sales in the pharmaceutical industry
For the purpose of creating a compliant and
transparent pharmaceutical industry, the
Chinese National Health Commission (NHC)
has issued the Key Points on Correcting
Malpractices in Purchase and Sale of Medicine
and Medical Service (Key Points) jointly with
several other national authorities in each of
the past five years. These set out the key tasks
that authorities at both national and local
level should undertake. Although the Key
Points are not laws regulating the practice of
market players, they provide insight into the
regulatory spotlight for life science and health
care companies.
Relatedly, the 2022 Key Points also urged the
authorities to collaborate in maintaining a list
of enterprises engaging in malpractices, as a
reminder to parties in the industry to consider
with caution whether to conduct business with
such enterprises.
Against the backdrop of the Chinese
government’s strengthened enforcement
against misconduct in the LS&HC industry,
market players are recommended to ensure
all necessary compliance requirements set
out in laws and regulations as well as internal
policies are well conveyed to – and followed
by – their employees.
Combatting commercial bribery has always
been a focus of the Key Points. The 2020 Key
Points mentioned the NHC shall take the
lead to crack down on misconduct of value
transfer under the cover of speaker events,
sponsorships, and academic support. The 2021
and 2022 Key Points required the NHC, the
State Administration for Market Regulation
and other authorities to work in cooperation
to investigate the provision of rebates and
kickbacks to health care professionals.
Calvin Ding
Partner, Shanghai
Serene Shen
Associate, Shanghai
