China-based pharmaceutical distribution giant Shanghai Pharmaceuticals (SPH; HKG: 2607; SHA: 601607) has disclosed that several former executives are suspected of serious violations of discipline and law. Pan Deqing, the company’s former vice-president, Chen Binhua, former general manager of subsidiary SPH NO.1 Biochemical & Pharmaceutical Co., Ltd, and Li Ping, former general manager of subsidiary Shanghai Shangke Pharmaceutical Co., Ltd, are currently undergoing disciplinary review and supervisory investigation by the Minhang district commissions for discipline inspection and supervision in Shanghai. Additionally, Huang Zhenhui, former deputy general manager of SPH NO.1 Biochemical & Pharmaceutical, is being investigated by the Minhang district supervisory committee. As of the announcement date, none of the individuals mentioned are employed by SPH.
Resignations and Early Departures
SPH announced on September 2, 2023, that the board of directors received a written resignation from Pan Deqing. Due to personal reasons, Pan Deqing resigned from his position as VP of SPH and all roles within its subsidiaries. His term was initially expected to last for three years from March 2022, but he left the company after only 1.5 years, prior to the official retirement age of 60. Pan had also served as the director of SPH’s marketing center. Li Pingyue resigned over a month ago, and Chen Binhua retired early.
Anti-Corruption Campaign in China’s Pharmaceutical Industry
The development follows an ongoing anti-corruption campaign that began in July 2023, targeting China’s pharmaceutical industry. By mid-August, more than 180 hospital presidents and party secretaries had reportedly been put under investigation. Several significant bribery cases have been uncovered and reported, highlighting the scale of the crackdown on corruption within the sector.-Fineline Info & Tech
