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Several Provisions on Anti-Unfair Competition in the Pharmaceutical Industry

Article 1: In order to stop unfair competition, correct unhealthy trends in the industry, regulate pharmaceutical market behavior, and ensure the safety and effectiveness of pharmaceutical products, in accordance with the "Anti-Unfair Competition Law of the People's Republic of China and the State" and Relevant national laws and administrative regulations formulate these regulations. Article 2: Pharmaceutical production and operation administrative departments at all levels encourage, support and protect all units and individuals to conduct social supervision of unfair competition and unhealthy trends in the pharmaceutical industry. Do not support or cover unfair competition. Article 3 Pharmaceutical production and operation enterprises must comply with the provisions of laws, regulations and administrative rules such as the Drug Administration Law of the People's Republic of China and its implementation measures or the Interim Measures for the Administration of Medical Devices. Only after the department reviews and approves, determines qualifications, and obtains legal status can it carry out production and business activities within the corresponding scope. Article 4 Pharmaceutical product manufacturing and operating enterprises shall not counterfeit other people's registered trademarks, shall not use the unique packaging and decoration of other pharmaceutical products without authorization, shall not forge or impersonate quality certification marks and famous and excellent marks on goods, shall not forge or impersonate drug approval marks. Document number and medical device approval number. Article 5: Pharmaceutical manufacturing enterprises can independently choose legal pharmaceutical wholesale enterprises to sell their products, and are generally not allowed to sell directly to medical institutions or pharmaceutical retail enterprises. Pharmaceutical retail companies and medical units can independently choose legal pharmaceutical wholesale companies to purchase the required drugs. Generally, it is not allowed to purchase products directly from pharmaceutical manufacturers. Article 6 Pharmaceutical manufacturing enterprises and operating enterprises are not allowed to engage in pharmaceutical wholesale business with collective units or individual industrial and commercial households in the names of "joint venture", "cooperation", "entrusted sales", etc. It is not allowed to employ individual industrial and commercial households to promote drugs for the enterprise. Article 7 Pharmaceutical manufacturing enterprises and operating enterprises should strictly implement the "Economic Contract Law of the People's Republic of China" and the "Measures for the Division of Responsibility System for the Management and Distribution of Pharmaceutical Commodity Purchase and Sales Contracts" in their trading activities. Purchasing and sales personnel must have corporate legal person status. Conduct purchase and sale activities on behalf of the entrusted agency certificate, conscientiously perform the purchase and sale contract, do not use credit sales as a means of competition, and are not allowed to falsely report losses or losses in transit. Article 8 Pharmaceutical manufacturing enterprises and operating enterprises shall not use various bribery methods such as sending money, gifts, providing travel, reimbursing expenses, etc. to induce the other party to purchase pharmaceutical products.

Pharmaceutical production and operation enterprises may expressly give discounts to each other during purchase and sale activities. Discounts given to the other party must be truthfully recorded in the accounts, and the units and individuals receiving the discounts must also be truthfully recorded in the accounts. Those who secretly give kickbacks to other units or individuals outside the accounts will be punished as bribes. Article 9: The pharmaceutical packaging of pharmaceutical enterprises must comply with relevant regulations, and pharmaceuticals must not be packaged in daily necessities. Article 10: Medical product advertisements must be true, scientific, and accurate. Pharmaceutical production and operation enterprises shall not use advertising or other methods to falsely promote pharmaceutical products.

The publication and broadcast of pharmaceutical product advertisements must be reviewed and approved in accordance with the procedures required by the "Measures for the Administration of Drug Advertising" and the "Measures for the Administration of Medical Device Advertising". Article 11 Pharmaceutical production and operation enterprises shall not sell goods at prices lower than cost for the purpose of squeezing out competitors. Exceptions are made for selling overstocked goods, or selling goods at reduced prices due to debt repayments, production changes, or closure of business. Article 12: Pharmaceutical products shall not be sold with prizes. Article 13 For those who violate these regulations, the administrative departments for pharmaceutical production and operation at or above the provincial level shall, according to the severity of the case, impose a notice of criticism, suspend production and business for rectification, or even revoke the "Pharmaceutical Production Enterprise Certificate" and "Pharmaceutical Business Enterprise Certificate" in accordance with the law. If there are provisions in laws and regulations, the punishment shall be in accordance with the provisions of laws and regulations. Article 14 These regulations shall come into effect on December 1, 1993.