Beijing is seeking to quell public anger over the revelation that a pharmaceutical company distributed hundreds of thousands of faulty vaccines, sparking a nationwide outcry following a series of similar food and drug safety scandals.
Regulators said that Changchun Changsheng Biotech had forged data during the production of some 110,000 rabies vaccines and disclosed that the same company had also sold more than 250,000 “substandard” diphtheria, tetanus and pertussis (DTP) vaccines to medical centres last year.
Changsheng is China’s largest listed vaccine producer by revenue, with 110m doses of different vaccines sold domestically since 2012.
It was not clear how many people had received the faulty vaccines or what the effect of receiving them could be.
After the two announcements last week, the scandal became by far the most-discussed topic on Chinese social media at the weekend, with anger aimed at the company increasingly spreading to government officials as commentators pointed to failures in China’s regulatory and political system.
“All I want is to find out the truth. When the fraud started, how many fraudulent batches there are, how they were produced illegally and what kind of harm there will be. We as parents want solutions,” said Carol Zhou, a Beijing mother of a seven-year-old son who received Changsheng’s DTP vaccine.
Xi Jinping, China’s president, attempted to reassure parents in a statement published by state-media on Monday while he was on a state visit to Rwanda. Changsheng had violated laws and regulations and would be investigated, Mr Xi said, adding that drug safety was the ruling Communist party’s “unshirkable responsibility”. It followed a similar statement late on Sunday by Li Keqiang, Chinese premier.
All I want is to find out the truth. When the fraud started, how many fraudulent batches there are, how they were produced illegally, and what kind of harm there will be. We as parents want solutions
Carol Zhou, a parent
But Chinese consumers have become used to such pledges from China’s government following safety scandals, notably in 2008 when six babies died and tens of thousands were hospitalised after milk powder was tainted with the toxic chemical melamine.
Internet users pointed out that Sun Xianze, an official who was disciplined over the milk scandal, was made a top official responsible for drug safety in 2014.
Three years ago the country saw a similar outcry after thousands of ineffective vaccines were revealed to have been sold on the black market, prompting an overhaul of the country’s drug distribution system.
The result is widespread mistrust of official information. “Beijing’s Center for Disease Control said that the problematic rabies vaccine and DTP vaccines have not been used in the city, but we are very suspicious about it,” said Ms Zhou, adding that a group of parents had rallied on social media service WeChat and planned to question officials.
Internet users also blamed endemic bribery in China’s healthcare system for the distribution of low-quality drugs. Several Chinese health officials have been prosecuted in recent years for accepting bribes from Changsheng, according to court records.
The company recorded a net profit of nearly Rmb500m ($74m) last year. Its share price fell by the maximum 10 per cent on the Shenzhen exchange on Monday after a five day run of maximum losses which wiped Rmb9bn from its market value and prompted a sell-off in the stocks of other drugmakers.
Analysts said the scandal would hamper China’s efforts to promote its domestic drug industry as it seeks a larger share of the global market and tries to cut medical spending. Multinationals typically charge premium prices for imported drugs as they are more trusted by Chinese patients.
“This incident is definitely a big blow to the trustworthiness of domestic drugs. It is foreseeable that in the future parents will choose imports whenever possible,” said Lin Jianghan, a partner at Ernst & Young.
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