Hengrui Group

Hidden rules are hard to break. Hengrui Pharmaceutical salesmen have been involved in medical corruption cases many times!!!

Medical corruption is shocking.

On April 22, 2015, Chen, the former director of the Hangzhou Iron and Steel Group Company Staff Hospital, was sentenced to 8 years in prison and 80,000 yuan of property confiscated in the first instance because his behavior constituted the crime of accepting bribes. Bribes paid by salesmen of Jiangsu Hengrui Pharmaceutical Co., Ltd. (hereinafter referred to as "Hengrui Pharmaceutical") and many other well-known pharmaceutical companies also came to light.

A reporter from "China Business News" noticed that Hengrui Pharmaceutical salesmen have been involved in bribery cases of hospital-related personnel many times. However, after each incident broke out, the companies involved seemed to be able to "escape" from it, which did not prevent them from continuing to advance in the market.

Involved in multiple cases

Hengrui Pharmaceutical is the largest research and production base for anti-tumor drugs and surgical drugs in China, and one of the most innovative large pharmaceutical companies in the industry. We have always shown ourselves to be focused on innovation.

The financial report shows that in 2014, the company's main operating income was 7.452 billion yuan, a year-on-year increase of 20.14%; it achieved a net profit of 1.516 billion yuan, a year-on-year increase of 22.41%. Correspondingly, market expenses in 2014 were as high as 2.58 billion yuan, accounting for 34.6% of that year’s operating income.

The high market fees may provide a convenient door for salesmen to pay bribes.

The criminal verdict of the People's Court of Gongshu District, Hangzhou City, Zhejiang Province shows that between 2010 and 2014, Song, a salesperson in Hengrui Medicine's Hangzhou area, had sex with Chen, the former director of the Hangzhou Iron and Steel Group Company Staff Hospital. In order to thank him for his help in selling clarithromycin and other drugs into Hangzhou Iron and Steel Hospital, he gave the defendant Chen *** a total of RMB 20,000 under various names many times.

Song’s testimony proves that Hengrui Medicine and Hangzhou Iron and Steel Hospital where he is located have Nobond (clarithromycin), Belle (ambroxol oral solution), Lejia (sodium potassium magnesium calcium injection) liquid), Virit (dealsedron), Ruifei and other drug businesses. At the end of 2009, Song took over the business of Hangzhou Iron and Steel Hospital. It was through his management that Le Jia and Weirite entered Hangzhou Iron and Steel Hospital, and he also asked Chen to help. During the holidays, Song gave Chen a total of 20,000 yuan in cash at Hanggang Hospital. In 2010 or 2011, Chen said he was going to Hainan or Xiamen for a trip and asked Song to share some of the expenses. Song remembered that Chen had taken the travel invoice and asked Song to reimburse him. Song gave 10,000 yuan in cash to Chen at the gate of Chen's community or Hang No. 2 Middle School.

In fact, this is not the first time in recent years that a Hengrui Pharmaceutical salesperson has been involved in a medical corruption case.

In June 2014, the criminal verdict of the Suzhou Intermediate People's Court of Jiangsu Province showed that the defendant Chen took advantage of his position as the president and vice president of Wujiang First People's Hospital to accept Hengrui Pharmaceutical Group Zhang, the director of the Suzhou office of the company, requested a request to seek benefits for him in pharmaceutical procurement matters. For the above reasons, he illegally accepted RMB 16,000 from Zhang at his Wujiang First People's Hospital office twice.

In April 2014, the criminal verdict of the People's Court of Fugu County, Shaanxi Province showed that from 2008 to 2013, Wang, a salesperson of Jiangsu Hengrui Pharmaceutical Co., Ltd., was selling drugs to the Second Hospital of Yulin City. , in order to allow its drugs to be successfully sold in the Second Hospital and to prevent the drugs already on sale from being eliminated, a bribe of RMB 63,500 was paid to Liu, director of the Pharmacy Department of Yulin Second Hospital.

Wang’s testimony showed that he started working as a sales clerk at Jiangsu Hengrui Pharmaceutical Co., Ltd. in 2005, and started mainly doing drug sales at Yulin Second Hospital in 2006. Because the addition of drugs to the Yulin Second Hospital's drug catalog must be approved by Liu Weibin, he sent 10,000 yuan to Liu Weibin on October 14, 2008, and 10,000 yuan to Liu Weibin on January 13, 2009. On September 22, he sent 10,000 yuan to Liu Weibin. In addition, in February 2012, he paid Liu Weibin 18,500 yuan for travel expenses and gave Liu Weibin 5,000 yuan as a thank you for his care in the process of promoting drugs.

What explanation does Hengrui Pharmaceutical have for its salespersons’ involvement in the multiple cases mentioned above? Have relevant corrective measures been taken in this regard? Hengrui Medicine responded to this newspaper saying that the company was not aware of the above content and was in the process of further understanding and verifying the relevant situation.

It is worth noting that the salesmen involved in the case all appeared in the judgment as witnesses and were not noted as being dealt with in another case.

In fact, as early as June 30, 2008, the Henan Provincial Department of Health named 36 pharmaceutical companies that bribed hospitals and doctors in Henan Province. Hengrui Medicine was among the list. The product involved at that time was Oxalis. platinum.

On August 22, 2012, an online post signed by "Former Medical Representative of Hengrui Pharmaceuticals" suddenly appeared on the Internet. The article stated that it "disclosed Hengrui Pharmaceutical's illegal activities" and mainly disclosed Hengrui Medicine was suspected of paying high medical kickbacks to doctors during its business operations at the First Affiliated Hospital of Guangxi Medical University, Guangxi Cancer Hospital and other hospitals.

Documents disclosed online this time stated that more than 20 products including axol, oxaliplatin, calcium leucovorin, and cisatracuramide were suspected of bribery. The Department of Radiotherapy of the First Affiliated Hospital of Guangxi Medical University Many doctors from departments including , Chemotherapy Department, Gynecology, Cardiothoracic Surgery, Gastrointestinal Glandular Surgery and other departments appeared on the "bribery" list.

Xu Guowen, the company’s then securities affairs representative, firmly denied in an interview with media reporters that Hengrui Pharmaceuticals was suspected of bribery. Let it go.

None of this has hindered Hengrui Medicine from continuing to make rapid progress in the market.

The financial report shows that in the first quarter of 2015, the company's operating income was 2.204 billion yuan, an increase of 28.03%, and its net profit was 547 million yuan, an increase of 40.2%. At the close of trading on May 27, Hengrui Pharmaceutical's share price rose 5.19%, with its total market value reaching 101.2 billion yuan, becoming the first listed pharmaceutical company to enter the 100 billion yuan market value club.

Hidden rules are hard to break

Pharmaceutical company business personnel bribing relevant hospital personnel has become an industry "hidden rule". Business personnel from many pharmaceutical companies also acted as agents in the Hangzhou Iron and Steel case. played a disgraceful role.

The judgment of the Hangzhou Gongshu District Court also shows that from 2005 to 2014, Jin, the deputy general manager of Zhejiang Neptune Pharmaceutical Co., Ltd., in order to thank the defendant Chen for the introduction and suspension of new drugs for the drugs he represented, He also provided help with drug reuse and drug dosage, and gave defendant Chen *** a total of RMB 86,000 worth of property many times. In the second half of 2012, Huang, the Zhejiang district manager of Zhejiang Conba Pharmaceutical Sales Co., Ltd., gave the defendant Chen 3,000 yuan in cash in his office in order to build a good relationship with the defendant Chen so that he could get attention in drug sales. .

Those who take bribes go to jail, while those who give bribes may not be held criminally accountable due to minor circumstances. So can pharmaceutical companies that benefit from it also "escape"?

In fact, relevant national departments have long established a "blacklist" system for commercial bribery in the field of pharmaceutical purchase and sales. Once a pharmaceutical company is found to have committed commercial bribery, it will be included in the bad record, which will affect its product bidding and procurement.

According to the National Health and Family Planning Commission's "Regulations on Establishing Bad Records of Commercial Bribery in the Field of Pharmaceutical Purchase and Sales", enterprises that produce and operate drugs, medical equipment and medical consumables, or their agencies and individuals, are allowed to purchase and use their drugs, Staff members of medical and health institutions who use medical equipment and medical consumables for property or other benefits in any of the following circumstances shall be included in the bad record of commercial bribery: the people's court determines that the crime constitutes a bribery crime, or the crime is minor and does not require a criminal penalty , the people's court sentenced him to be exempted from criminal punishment in accordance with the criminal law; the crime of bribery was minor, and the people's procuratorate made a decision not to prosecute.