Ministry of Health issued new regulations for foreign milk powder will lose monopoly rights

On November 8, the Ministry of Health issued the "Measures for the Management of Breastmilk Substitutes (Consultation Draft)" (hereinafter referred to as the "opinion"), which prohibits advertisements or sale promotion of breastmilk substitutes, including infant milk powder, and prohibits hospitals. Carry out any marketing promotion.

Although the state expressly stipulates that milk powder manufacturing companies are not allowed to conduct medical marketing, illegal marketing of production enterprises has long been an open secret. A number of enterprises indicated that the first- and second-tier urban hospitals were monopolized by the foreign brands of milk powder. The hospital's first newborns were mostly controlled by foreign brands, and domestic brands could not squeeze in. After many rectifications, medical marketing has gradually turned from dark to light, and commercial bribery has continued for many times.

If supervision is in place and the branded milk powder in the hospitals in the first and second tier cities is indiscriminate, the advantages of medical marketing for many years will collapse.

Chen Lianfang, an Oriental dairy analyst with AIG, believes that “it is a good opportunity for domestic companies”.

"Brothers milk substitutes" as mentioned in the "References" refers to dairy products, drinks and other foods that are partially or completely replaced with breast milk by marketing them or providing them in other forms for infants within 6 months.

In addition, the Ministry of Health explicitly prohibits the design, production, distribution, distribution, or disguised publication of breast milk substitutes for breast milk substitute production companies and sales companies.

New methods were introduced, and domestic infant formula enterprises generally supported their attitudes. A person in charge of the domestic brand legal affairs department told reporters that “Foreign brands carry out hospital marketing and monopolize the first milk of the newborn, and later have to eat their products.”

In addition to prohibiting illegal behaviors of production companies, the "Contract Draft" expressly prohibits "collaboration" between medical institutions and medical personnel and infant formula milk powder producers and sellers. Driven by interests, obstetrics and medical personnel in some hospitals often become spokesmen for formula companies, helping them to market and make profits.

Chen Lianfang said that one of the key points in medical marketing is “raising the number of people in the medical system. Domestic brands do not have as much capital competition as they do (for foreign brands)”.

The "Contract Draft" also emphasizes the violation of the penalties for violations by producers and distributors. If an advertisement is advertised or reduced prices are advertised in violation or if any marketing promotion is conducted within the hospital, the health administrative department will “give a warning, order it to be rectified within a time limit, and impose a fine of not less than 1,000 yuan but not more than 30,000 yuan. If a crime is constituted, the criminal liability shall be investigated according to law. ". The same applies to medical staff.

Criminal law sanctions against companies and personnel in violation of regulations have not been stipulated in previous policies. This will have a deterrent effect on companies and even medical personnel. However, there is no clear definition of how to "constitute a crime."

The reporter conducted a survey in the obstetrics of a tertiary hospital in Changchun. Only three foreign brands were involved in the obstetrics of the hospital. On the outer packaging of milk powder, they were marked as “special hospitals”, making it difficult for domestic brands to enter.

Euromonitor data show that in the domestic milk powder market, Mead Johnson accounted for 11.7% in 2010, Dumex was 9.8%, Wyeth was 7.4%, Abbott was 5.3%, and Nestle was 2.3%.

However, foreign brands have different views on the impact of the revision of the “opinion”. According to Mr. Xi Qing, head of publicity for Wyeth milk powder, “I don’t think it has a big impact on us. We have always complied with the “Medicine Substitutes Marketing Management Regulations” and did not conduct a promotion (0-6 months) of milk powder. We support health The Ministry implemented the new measures."

Xi Qing said that there is a misunderstanding that the country is not targeting all breast milk substitutes, mainly for 0-6 months of milk powder, and other stages of milk powder are not restricted.

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