China Detains 37 People Linked To Vaccine Scandal — Xinhua

Prior to the arrest, a mother-daughter sold 'fake vaccines' across the country worth more than US$88 million. Chinese health regulators published a list of the fake vaccines sold since 2011 and pledges to crack the case. (Photo: Carlos Reusser Monsalvez | Flickr)

Chinese police have detained 37 people linked to a vaccine scandal and are investigating three pharmaceutical companies, state news agency Xinhua reported on Wednesday.

Reuters report continues:

The case involves nearly US$90 million worth of illegal vaccines, against meningitis, rabies and other illnesses, that are suspected of being sold in dozens of provinces around China since 2011.

Chinese Premier Li Keqiang said the incident had exposed many regulatory loopholes and ordered authorities to undertake a thorough investigation, according to a statement posted on the government's website late on Tuesday.

The vaccine scandal underlines the challenge the world's second-largest drug market faces to regulate its fragmented supply chain, even as Beijing looks to support home-grown firms.

Xinhua said the arrests were made by police in Shandong, the eastern Chinese province at the heart of the scandal. One of the three firms being investigated, Shandong Zhaoxin Bio-tech Co., has been ordered to halt operations and had a license revoked, it said.

It also said China's top court would oversee the vaccine case directly.

On Tuesday, China's drug regulator identified nine vaccine wholesalers from six provinces suspected of filing fake reports of buyers' identities.

Police said a mother and daughter in Shandong had illegally bought vaccines from traders and sold them on to hundreds of re-sellers around China, according to a notice from the Shandong Public Security Department.

Authorities should improve the regulatory system surrounding vaccine production and distribution, Premier Li said, and dereliction of duty related to accountability would not be tolerated.

China Pledges To Crackdown On Fake Vaccines Sold Across The Country

Tech Times reports that China's health regulators released a public list of fake vaccines sold in 18 provinces since 2011 and pledges to crackdown the ongoing scam. The fake or 'problematic' vaccines list included one therapeutic drug, two immune globulin and 12 vaccines that a mother-daughter supposedly sold before their arrest in Shandong Province.

The products included in the list are said to be worth more than 88 million dollars (570 million yuan). The alleged fake products have been sold to both distributors and pharmaceutical companies who had been given a March 25 deadline to provide information about the products' whereabouts.

Prior to the arrest, the mother-daughter duo purchased and sold the fake vaccines for a profit to hundreds of re-sellers across China. The mother was a former doctor and the two were arrested in April 2015 but the case was not highly publicized until now.

While the vaccines were manufactured by legitimate and licensed producers, the vaccines were improperly stored and transported. The mishandling jeopardized the products' quality and efficacy.

Improper handling also can result in side effects that can cause disabilities and even death. The list included vaccines against rabies and meningitis among others.

"We will thoroughly investigate all clues in the case and once we get to the bottom of it then we will severely punish those found to have violated the law," said the Shandong food and drug administration in a statement.

The notice encouraged other provinces to check their vaccine supply in case they had been sold the alleged products. Patients given the 'fake' vaccines could also end up suffering dire consequences.

The incident brings to light frustrations from several doctors and patients in the country. They highlighted that the limited access to some drugs due to the red tape surrounding approvals, furthers the demand for medical products from the black market and other unapproved channels.

Just last year, Pfizer Inc. closed its trade in China for the Prevenar vaccine. It was the only vaccine Pfizer sold in China. The drug maker decided to close its vaccine sales when the license was not renewed.
Pfizer's Prevenar vaccine protects against the pneumococcal disease that can lead to sepsis, pneumonia and meningitis.