“Online petty advertisements” are rampant, with frequent instances of illegal online sales; the illicit circulation of pharmaceuticals has evolved into a highly profitable industrial chain.

　　The illegal circulation of pharmaceuticals poses a serious threat to public health and safety. Investigations conducted by reporters from the Economic Information Daily in multiple regions reveal that this problem persists; some criminals operate in organized gangs, establishing illicit distribution networks, while online sales further complicate regulatory oversight. The illicit trade in medicines is characterized by high levels of concealment, long supply chains, and particularly egregious practices, seriously jeopardizing medication safety and undermining the orderly functioning of the pharmaceutical market.

　　Industry experts are calling for the further establishment of a long-term mechanism for pharmaceutical regulation, the development and widespread adoption of advanced technologies, and the strengthening of oversight over medical institutions and online drug‑selling platforms. At the same time, they urge enhanced public awareness campaigns and training to improve society’s understanding of safe medication use.

　　 The illegal circulation of pharmaceuticals is highly concealed, giving rise to a highly profitable industrial chain.

　　According to interviews with reporters, the main forms of illegal drug distribution today include cross‑regional diversion of pharmaceuticals, procuring drugs from medical institutions for resale, and smuggling imported medicines from abroad. In some cases, the difficulty of investigation and enforcement continues to grow.

　　The crimes were committed by a group of acquaintances, making them highly concealed. Zhou Junyi, captain of the Fourth Squad of the Public Security Brigade of the Donghu Sub-bureau of the Nanchang Municipal Public Security Bureau in Jiangxi Province, explained that in October 2021, police uncovered an illegal pharmaceutical resale case: the suspect, Su, had shipped items via China Railway Express to Zhang in Hubei. Investigation revealed that this illicit drug‑trafficking ring involved numerous participants and a complex criminal network. Authorities seized more than 200 varieties of medicines—over 50,000 boxes—obtained through fraudulent use of medical insurance; arrested 15 suspects; raided eight storage sites; froze 16 bank cards used for transactions; and traced funds totaling nearly RMB 3 million, with the total value of the case exceeding RMB 200 million. The scheme spanned 14 provinces, autonomous regions, and municipalities, including Hubei, Sichuan, Fujian, and Shanghai.

　　The interviewees noted that this case is highly representative, exhibiting characteristics such as familial ties, regional clustering, and online networking. The perpetrators are often related by blood or marriage, with family members and relatives enjoying a high degree of mutual trust; they maintain strong external concealment and can easily mobilize across the country.

　　Illegal sales have given rise to a shadowy criminal network, with particularly egregious implications. According to insiders, certain criminal gangs systematically acquire pharmaceuticals in small quantities from hospitals and nearby pharmacies, consolidate and repack them, use logistics services for delivery, and then resell the drugs, thereby establishing a fully integrated criminal supply chain.

　　Generally, criminal suspects engage in a “one-to-many” scheme to purchase pharmaceuticals from insured individuals. Given that those involved in medical insurance fraud typically handle small sums of money, face difficulties in initiating investigations, and operate on a large scale, evidence must be gathered from multiple angles—such as whether the drugs are covered by medical insurance and whether they were obtained through fraudulent means—thereby increasing the complexity of the investigation.

　　It is worth noting that, during certain critical periods, after higher-level “drug peddlers” have gained control of the market or identified pharmacy demand, lower-level “drug peddlers” may incite insured individuals to prescribe the medications they require. Such practices can lead to temporary drug shortages, price hikes, and market disruption.

　　The illegal sale of substandard drugs carries a high risk and poses significant potential harm. According to several police officers interviewed, illicitly distributed pharmaceuticals are widely available and highly hazardous; in some cases, the drugs were sourced from more than ten regions across the country and sold nationwide. During transportation, these medications are prone to deterioration, resulting in substandard products. Furthermore, some criminals, seeking to maximize profits, deliberately purchase drugs nearing their expiration dates—drugs that may lose efficacy over extended periods of storage and distribution.

　　Industry insiders point out that crimes involving pharmaceuticals not only gravely jeopardize the integrity of medical insurance funds but also undermine the order of the pharmaceutical market and public medication safety, thereby harming the interests of both the state and the people.

　　 Online illegal sales: regulatory challenges intensify.

　　In addition to offline distribution, some pharmaceutical products are also being sold illegally online. Unscrupulous actors use platforms such as WeChat and live-streaming services to conduct transactions; during these operations, the storage and transportation of the drugs fall outside regulatory oversight, further exacerbating risks to drug safety.

　　The prescription drug semaglutide injection, manufactured by Novo Nordisk, is indicated for type 2 diabetes. However, when reporters entered the drug’s name on several social media platforms, a significant portion of the search results was related to “weight loss.” Experts interviewed noted that in recent years, this medication has increasingly been hyped as a “miracle weight-loss drug,” and such off-label use poses potential safety risks.

　　In accordance with relevant regulations on the supervision of pharmaceutical distribution, retail pharmacies selling prescription drugs must hold a “Pharmaceutical Business License,” and such retailers are required to dispense prescription medications only upon presentation of a valid prescription. Nevertheless, inquiries about and advertisements for the sale of semaglutide injection are frequently seen on various online social platforms. Some posts or comments even report that “hospitals are out of stock,” while others feature “buying agents” actively seeking the drug, claiming, “If you can obtain it at a hospital, please contact me—I’ll cover the registration fee.”

　　Industry insiders reveal that such “proxy purchasing” services are typically operated by individuals, lacking both the necessary business licenses and the proper procedures to dispense medications based on users’ prescriptions, thus failing to comply with relevant regulations.

　　The Measures for the Supervision and Administration of Online Pharmaceutical Sales stipulate that when prescription drugs are sold to individuals via the internet, it is necessary to ensure the authenticity and reliability of the prescription source, implement a real-name registration system, and conduct strict prescription review and dispensing in accordance with relevant regulations. Nevertheless, certain online pharmaceutical platforms have also been found to be suspected of violating laws and regulations.

　　According to reports from reporters, some online pharmaceutical platforms allow prescription drugs—including the small-molecule antiviral drug Azvudine—to be purchased after an online consultation, prescription issuance, and verification. Industry insiders point out that “these channels may, in practice, cross regulatory boundaries, as either the purchasing agents or the platforms fail to rigorously verify buyers’ prescriptions.”

　　Meanwhile, issues such as the high price premiums associated with “high-demand medications” traded on the black market, the proliferation of online advertisements, and inadequate safety guarantees in parcel delivery have become particularly pronounced. For example, some drug package inserts explicitly state that the medication must be stored at 2 to 8 degrees Celsius before opening. However, many drugs circulating privately are difficult to monitor throughout their entire transportation process, posing significant safety risks during storage stages outside of cold-chain logistics; in some cases, deliveries are even handled using nothing more than standard courier services supplemented by ice packs.

　　 Regulate the pharmaceutical market and rectify illegal distribution.

　　Grassroots officials and community members have pointed out that primary-level drug regulatory agencies generally face staffing shortages and a lack of specialized expertise, while also grappling with practical challenges such as inadequate funding, outdated enforcement equipment, and the absence of advanced technological tools. As a result, related work urgently requires strengthening.

　　Establish a sound, long-term mechanism for pharmaceutical regulation and foster coordinated oversight. Interviewees suggest forming an interagency coordination mechanism involving medical insurance, health commissions, drug regulatory authorities, market regulators, postal services, and other relevant bodies to strengthen effective oversight across multiple stages, including the operation of medical insurance funds, hospital drug management, and pharmaceutical market circulation. In areas where conditions permit, pilot systems of pharmaceutical supervision coordinators and information officers could be introduced to promptly monitor healthcare utilization and medication use. For medical institutions and online pharmaceutical retailers, launch targeted campaigns that combine joint inspections with unannounced spot checks, rigorously enforce pharmaceutical business‑management standards, and intensify efforts to crack down on illegal activities.

　　Develop and promote the application of advanced technologies, and intensify efforts to crack down on the illegal online and offline sale of prescription drugs. Solicit leads from across regions on the resale of recovered pharmaceuticals, sever illicit supply chains, and prevent such products from entering the market. Strictly enforce real-name registration requirements in online shopping platforms, courier services, and logistics industries; rigorously investigate cross‑provincial and cross‑city shipments of pharmaceuticals conducted without proper qualifications or documentation, thereby dismantling transportation networks used for transregional criminal activities.

　　Step up publicity, training, and education efforts to enhance public awareness of medication safety. Strengthen professional and legal training for medical institutions and pharmaceutical‑industry personnel. Regularly disclose cases of illegal drug distribution to the public. Guide insured individuals, particularly the elderly, to resist the lure of small gains, ensure that drug distribution channels are lawful and compliant, and consciously reject illegally circulated medications. (Reporters: Yang Siqi, Min Zuntao, Huang Kaiying, Wang Kun)

[Editor-in-charge: Zhao Yang]

Source: Economic Information Daily