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Why do countries ban drug OEM?

Reasons for national prohibition of drug OEM:

1. Unlike independent brands, OEM processing differentiates interests. The entrusted company only earns processing fees and "makes wedding clothes for others", and brand cultivation has nothing to do with it. Because they only play an employment role, they have no motivation to produce high-quality products. On the contrary, in order to reduce processing costs, they try every means to make a fuss around drug standards. As long as they get 60 points, not 100 points, they can "deliver" if they pass the drug inspection. This is one of the reasons why consumers report different efficacy between branded products and OEM products. At the same time, because the brand benefits are separated from the entrusted enterprise, there is no risk of "smashing the brand". The illegal costs of cutting corners and lowering production conditions are lower and simpler, which increases the opportunities for illegal activities.

2. OEM, is it the brand or the profit? Most of the varieties that were branded were originally unpopular, poorly recognized, and mediocre in efficiency. After being affixed with new trademarks, they were bought out and operated. They are relatively unique and lack market comparability, so it is easier to sell in terms of price. It is deceptive and deceptive.

3. After several rounds of price wars, the drug retail industry has invested its profit growth in off-brand drugs (including OEM drugs) and non-drugs, and brand-name drugs have been hidden or even withdrawn from the shelves. Since then, a strange phenomenon has spread in the pharmaceutical retail industry. When ordinary people want to buy brand-name products, they are often told that the products are sold out, or they are guided, hinted, or recommended to buy off-brand drugs, and then the drugs are replaced.

In summary, drug OEM appears immature in terms of timing, awareness, performance, and social benefits. Without long-term and rational planning, it feels like short-term speculation, and the overall effect is more harmful than good.