FDA stops on­line medicine sales

China Daily (USA) - - NEWS CAPSULE -

Chi­nese e-com­merce gi­ant Alibaba Group Hold­ing Ltd has ceased on­line sales of medicine on its Tmall plat­form as the gov­ern­ment tight­ens its con­trol over the coun­try’s nascent e-phar­macy in­dus­try.

Tmall, the busi­ness-to-con­sumer site of Alibaba, told its on­line ven­dors that the site will stop the on­line sales of medicines as of Aug 1, cit­ing changes in gov­ern­ment reg­u­la­tion.

The change put an end to China’s trial of sell­ing drug prod­ucts di­rectly to con­sumers via on­line third-party plat­forms. The ban ap­plies to other e-com­merce com­pa­nies in­volved in sell­ing drugs on third-party plat­forms.

An­a­lysts said that the reg­u­la­tion will not sig­nif­i­cantly hurt Tmall’s medicine busi­ness, as only an es­ti­mated 20 per­cent of its sales are drug prod­ucts.

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