A branch of China's vaccine maker Changsheng Bio-technology has been fined with penalties amounting to 9.1 billion yuan after becoming involved in a scandal regarding falsified data over their rabies vaccine.
On Tuesday, the Chinese drug regulatory body said that it has imposed penalties on the Changchun Changsheng Life Sciences Ltd. and banned 14 of its executives from working in the drugs sector again.
The China Securities and Regulatory Commission also said that they will be imposing a separate fine of 600,000 yuan on Changsheng Bio-technology. Four executives were also fined and banned from working in the securities market for life due to the violation of information disclosure about the vaccine scandal.
Changsheng Bio-technology had earned the ire of the country for faking the data and producing ineffective vaccines for babies against rabies. When it was discovered, it faced threats of being delisted from the Shenzhen stock exchange due to the possible fines and confiscation of all illegal income that was taken from the scandal. It is reported that they were also delaying the announcement of their first-half results after issuing their profit alert in July, when it was expected that they would be gaining a six-month profit amounting to 211.4 million yuan to 317.1 million yuan.
Trading in Changsheng Bio-technology's shares have been stopped since August 31 after they failed to disclose their half-year earning report in due time.
On Tuesday, Changsheng Bio-technology said in a filing to the Shenzhen stock exchange that its Changchun unit intends to set up a special compensation fund for the vaccine scandal. It is expected that they would pay compensation from 200,000 to 650,000 yuan per person who have been affected by the vaccine.
