“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 channels further complicate regulatory oversight. The illicit trade in pharmaceuticals is characterized by its high degree of concealment, long supply chains, and grave implications, posing a severe risk to medication safety and undermining the orderly functioning of the pharmaceutical market.

　　Industry insiders 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‑sales 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 clandestine, 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, purchasing 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 individuals and operated through a complex criminal network. Authorities seized more than 200 varieties of medicines obtained through fraudulent use of medical insurance—totaling over 50,000 boxes—arrested 15 suspects, raided eight storage sites, froze 16 bank accounts used for transactions, and traced funds amounting to nearly RMB 3 million. The total value of the case exceeded RMB 200 million, with involvement spanning 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 assemble across the country.

　　Illegal sales have given rise to a shadowy criminal network, with particularly grave 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 them, 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 the medical insurance system and whether they were obtained through fraudulent means—thereby increasing the complexity of the investigation.

　　It is worth noting that, during certain critical periods, once higher-level “drug peddlers” gain control of the market or identify pharmacy demand, lower-level “drug peddlers” may incite insured individuals to prescribe the required medications. 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, illegally 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 unscrupulous actors, 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 drug-related crimes not only gravely jeopardize the integrity of medical insurance funds but also undermine the orderly functioning of the pharmaceutical market and the safety of public medication, 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 individuals exploit platforms such as WeChat and live-streaming services to conduct transactions; in the process, the storage and transportation of these 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 surprisingly 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, information seeking to purchase or sell semaglutide injection is frequently posted on various online social platforms; some posts and comments report that hospitals have run out of stock, while others even feature “buying agents” actively sourcing 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, who neither hold the requisite business licenses nor 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 strictly adhere to relevant regulations regarding prescription review and dispensing. 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 note that “these channels may, in practice, cross regulatory boundaries, as the agents or platforms often fail to rigorously verify purchasers’ prescriptions.”

　　Meanwhile, issues such as the high price premiums on certain “high-demand drugs” traded privately, the proliferation of online advertisements, and inadequate safety guarantees in express 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 through informal channels 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 suffer from staffing shortages and a lack of specialized expertise, while also confronting 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 a joint coordination mechanism involving relevant authorities such as medical insurance, health commissions, drug regulatory agencies, market regulators, and postal administration to strengthen effective supervision across multiple stages, including the operation of medical insurance funds, hospital drug management, and pharmaceutical distribution. In areas where conditions permit, pilot systems of pharmaceutical supervisory coordinators and information officers could be introduced to promptly monitor healthcare utilization and medication use. For medical institutions and online pharmaceutical retailers, launch special campaigns that combine routine 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; and dismantle 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 information on cases of illegal drug distribution to the public. Encourage insured individuals, particularly older adults, to resist the lure of small gains, ensure that drug distribution channels are lawful and compliant, and consciously reject illegally distributed medications. (Reporters: Yang Siqi, Min Zuntao, Huang Kaiying, Wang Kun)

[Editor-in-charge: Zhao Yang]

Source: Economic Information Daily