China plans to ban direct online drug sales for third-party platforms

The news that the State Food and Drug Administration of China plans to ban third-party platforms from directly selling medicines over the Internet not only caused controversy on the Chinese Internet yesterday and today, but also caused the shares of the largest online trading platforms in China to plummet. Internet - At the close, Ali Health (HK00241) was down 13.85% and (HK06618) was down 14.83%.


On June 17, the State Food and Drug Administration of China held a conference to revise the "Regulations on the Application of the Drug Administration Law" to listen to the views and proposals of various departments, since more than a month ago, on May 9, the State Administration of Food and Drug Administration The Food and Drug Administration issued the "Regulations on the Application of the Medicines Management Law of the People's Republic of China (Comment Draft)" (hereinafter referred to as the "Comment Draft"). ") and publicly solicited the opinion of the public, and on June 9, the aforementioned "Draft for Comments" request was finalized.


Article 83 of the "Draft Comments" "Third Party Platform Management Obligations" stipulates that third party platform providers shall establish a quality management system for online drug sales, establish specialized agencies and employ pharmacy technicians and other relevant professionals, establish and implement drug quality management systems. funds, distribution management and other systems. Third party platform providers are not allowed to directly participate in online drug sales.


In the Draft for Comments, much attention was drawn to the regulatory content that third-party platforms are not allowed to directly participate in online drug sales. The "Drug Operations" Regulations "Draft for Comments" stipulates the management obligations of third-party platform providers from three aspects: filing applications, quality management, proficiency testing and supervision of online drug sales, to participate in online drug sales activities", but not defines "direct participation".


“This is a draft opinion, not a final draft. There is controversy over the interpretation of the third-party platform ban. The scope of this rule is relatively broad, and the General Administration will take into account public opinion comprehensively, so there should not be a one-size-fits-all approach,” said an industry representative.

Thus, this decision has not yet been made, this is only a draft, which has not yet been finally adopted and is under development.