China announced plans to audit 77 major pharmaceutical companies over the next two months, including the China operations of three multinationals, Bristol-Myers Squibb, Sanofi and Lilly. The 77 companies were chosen randomly, not because China suspects any specific company of wrongdoing. The audits are a government response to a surprise announcement from Kangmei Pharma (SHA: 600518), a TCM company, that it had "overstated" its cash reserves by a jaw-dropping $4.4 billion. Apparently, Kangmei filed false invoices to inflate its sales and cash position. More details....
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Original Article: China to Audit 77 Pharmas after Kangmei Reports $4.4 Billion Fraud