The Department of General Affairs of the National Medical Products Administration ("NMPA") has recently issued the Circular on Launching the Rectification Program Against the Illegal Lending of Practicing Permits by Practicing Pharmacists to Drug Retailers (the "Circular").
It is decided in the Circular to launch a nationwide six-month program to rectify the situation where practicing pharmacists illegally lend their practicing permits to drug retailers. This rectification program is aimed at identifying, punishing and exposing a number of drug retailers and medical practitioners in violation of laws and regulations, an approach expected to effectively curb such unlawful lending, maintain a sound drug business order and oversee practices of practicing pharmacists. The Circular reads that, in accordance with requirements set out in the Circular of the National Medical Products Administration on Strengthening the Post-marketing Regulation of Drugs in 2019, supervisory inspections will be launched for drug retailers, to focus on investigating and punishing practicing pharmacists who are involved in illegal and unlawful business activities, including illegally lending their practicing permits to drug retailers. It is also required to link the rectification of such illegal permit lending to drug retailers with the routine supervisory checks targeting other affairs, such as whether drugs are purchased from legal channels and whether the management of invoices and vouchers are taken seriously, and drug retailers are urged to strengthen quality management and improve the level of their pharmaceutical services. Furthermore, the Circular sets out a clear arrangement for specific tasks.