China Loses It's Head Over Drug Regulation :: Michael Shulman's Biotech Blitz

China Loses It's Head Over Drug Regulation

I am not, by nature, a basher. I don't typically put forward negative ideas, but then again, China is, well, China.

Yesterday the Chinese proudly announced to the world they had executed the former head of their equivalent of the Food and Drug Administration for corruption that led to approval of drugs that killed as many as 12 Chinese people.

What the government didn't mention was that he failed to oversee manufacturers who made, for example, toothpaste that killed hundreds (perhaps more than a thousand) children in developing nations. I guess those kids don't count. After all, they weren't Chinese. And, most importantly, the Chinese wouldn't want any information to get out that might hurt the export market.

This sham of justice was designed to sell developed nations on the notion that the government is cracking down on improper food, food ingredient and drug production. Yeah, right.

Ever been to China? Like any other country, the individuals you meet are different in some ways, but in many other ways are like you and me -- but put the Chinese in the cultural, political and economic context of their nation and all bets on them being the same as us are off.

Today, China makes our old wild west look like a Quaker town meeting. It is completely overrun with corruption, conspicuous consumption, nearly total disrespect for intellectual property and the rules that (we hope) dominate business in the developed world. There is a terrible disregard for what we call here business ethics -- an oxymoron to some, not to me. Twelve Chinese people die and the guillotine returns!

A couple of months ago the head of the FDA (in the spirit of Harry Potter we will call him "he we do not name") overturned an advisory committee recommendation to approve the prostate cancer drug Provenge. Assuming the committee was right -- and the head of the FDA wrong -- between 50,000 and 80,000 men will die early or needlessly because of his ruling. Gee, that's a lot more than 12. Lucky for him he did this out of the goodness of his heart in an attempt to protect the American people -- and not to make a fast buck Chinese style.

What does this have to do with investing? Not much I guess, except that I get at least one e-mail a week inquiring about a Chinese drug company or a Chinese nutraceuticals and herbal remedy outfit.

Stay away! That country is so corrupt -- and so distant from us in time, ethos and the practice of Western standards of research and regulation, only an idiot would use a medical product made there and only a trader or the willfully ignorant would invest in a Chinese drug or nutraceuticals company.

If you disagree, I have a great tip on where you can buy property that has the real fountain of youth, I swear...

Comments

I am not, by nature, a basher. I don't typically put forward negative ideas, but then again, China is, well, China. Yesterday the Chinese proudly announced to the world they had executed the former head of their equivalent of the Food and Drug Administration for corruption that led to approval of drugs that killed as many as 12 Chinese people. What the government didn't mention was that he failed to oversee manufacturers who made, for example, toothpaste that killed hundreds (perhaps more than a thousand) children in developing nations. I guess those kids don't count. After all, they weren't Chinese. And, most importantly, the Chinese wouldn't want any information to get out that might hurt the export market. This sham of justice was designed to sell developed nations on the notion that the government is cracking down on improper food, food ingredient and drug production. Yeah, right. Ever been to China? Like any other country, the individuals you meet are different in some ways, but in many other ways are like you and me -- but put the Chinese in the cultural, political and economic context of their nation and all bets on them being the same as us are off. Today, China makes our old wild west look like a Quaker town meeting. It is completely overrun with corruption, conspicuous consumption, nearly total disrespect for intellectual property and the rules that (we hope) dominate business in the developed world. There is a terrible disregard for what we call here business ethics -- an oxymoron to some, not to me. Twelve Chinese people die and the guillotine returns! A couple of months ago the head of the FDA (in the spirit of Harry Potter we will call him "he we do not name") overturned an advisory committee recommendation to approve the prostate cancer drug Provenge. Assuming the committee was right -- and the head of the FDA wrong -- between 50,000 and 80,000 men will die early or needlessly because of his ruling. Gee, that's a lot more than 12. Lucky for him he did this out of the goodness of his heart in an attempt to protect the American people -- and not to make a fast buck Chinese style. What does this have to do with investing? Not much I guess, except that I get at least one e-mail a week inquiring about a Chinese drug company or a Chinese nutraceuticals and herbal remedy outfit. Stay away! That country is so corrupt -- and so distant from us in time, ethos and the practice of Western standards of research and regulation, only an idiot would use a medical product made there and only a trader or the willfully ignorant would invest in a Chinese drug or nutraceuticals company. If you disagree, I have a great tip on where you can buy property that has the real fountain of youth, I swear...