Photo: VCG

China’s State Administration for Market Regulation (SAMR), the country’s market watchdog, has issued a warning on anti-epidemic medical supplies on Friday, flagging nine “red lines” for related gear producers and operators which they should not touch down as demands for fever and cold drugs soar after the optimization of COVID response.

The nine “red lines” include not obeying the principle of honesty and fairness,  violating provisions on selling at marked price, bidding up price, conducting price fraud or price discrimination as well as driving up price through collusion. 

The SAMR also said on Friday that it has investigated and set up cases on illegal price hikes with regard to Lianhua Qingwen, which is among the list of recommended drugs according to new guidelines on home quarantine issued by Chinese authorities. It is part of the nation’s efforts to strictly clamp down on illegal medicine hoarding and price bid-up, and maintain fair competition.

According to a statement on SAMR’s website on Friday, the market regulator has investigated clues on medicine price mark-up at e-commerce platforms and organized market supervision departments at key provinces to inspect the clues on detail. The initial investigation has identified online pharmacies that are suspected of illegal price hiking, and has transferred the cases to regulators at provincial level for further investigation and prosecution.

For example, certain pharmaceutical operators drastically elevated sales price of Lianhua Qingwen at the beginning of December. In November, a box of Lianhua Qingwen capsule was sold at a price range between 26.8 yuan ($3.83) and 38 yuan at an online pharmacy store, but on December 5, the price jumped to 99 yuan a box. The procurement price was 23.5 yuan to 32 yuan a box.

“A drastic elevation on sales price on the basis of no obvious surge in the cost, or the scope of price hikes has conspicuously exceeded that of cost increase, has constituted illegal price bid-up,” SAMR said. 

The supply of a batch of medicines including Lianhua Qingwen, vitamin C lozenges and ibuprofen has been stretching in recent days, after China continued to optimized COVID-19 prevention and control measures. 

Demands for antigen testing kits also exploded since Thursday, after China's health authority issued a guideline for using rapid antigen testing in a move consistent with its recent measures that cut nucleic acid testing requirements for most social activities.

Global Times