"This year, we plan to organize four to five citywide campaigns against counterfeit medicines," said Wang Longxing, director of Shanghai Drug Administration. "We will also set up an industry blacklist and shakeout system to curb the rising number of bogus medicines."

Last year, hundreds of inspectors conducted spot checks, finding 392 cases in which there were violations of medicine regulations, up 44 percent from the previous year.

They destroyed Shanghai Zhonglian Pharmaceutical Equipment Co Ltd's factory because it produced sex tonics containing sildenafil citrate, an active ingredient in the anti-impotence drug Viagra.

The inspectors also shut down Shanghai Kangyu Chemical Reagent Co. because it was operating illegally.

Overall, the Drug Administration officials last year destroyed fake and low-quality medicines and medical equipment valued at 5.6 million yuan (US$674,699), confiscated 1.26 million yuan that were revenues generated by illegal practices and imposed fines of 2.88 million yuan.

The administration also forced the removal of advertisements for 47 medicines that misled consumers.

"The crackdowns this year will be tougher, and we hope bogus drugs will be driven from the local market," Wang said. "We are encouraging courageous people to help us, and we will reward them."

Tipsters offering "useful information" will get 10 percent of the fine imposed on the offending party, but no more than 50,000 yuan.

Since an increasing number of local residents are shying away from hospitals and are going to drugstores, Wang said drugstores must be more professional and efficient.

"Since the end of last year, 577 drugstores, or 41.21 percent of the total, have been reshaped to share a common professional standard," Wang said. "All drugstores are required to reach that standard by the end of this year. Otherwise, they will be merged or taken over by others."

The state Drug Administration last year began a new round of recertification for pharmaceutical companies, making it more difficult to get a license to manufacture and sell medicines. Newly amended laws will force pharmaceutical companies to go out of business if they are unable to meet the new quality standards by 2004.

Wang said the "qualification ratio" for local firms is expected to reach 50 percent by the end of this year.

(eastday.com March 4, 2002)