Core Viewpoint - The implementation of drug traceability codes in China aims to enhance drug safety and ensure that all drugs involved in centralized procurement have unique electronic identifiers, thereby preventing counterfeit and substandard drugs from entering the market [1][2]. Group 1: Drug Traceability System - Starting from 2025, all drugs participating in centralized procurement must have traceability codes, which serve as unique electronic identities for each drug package [1]. - The traceability system is designed to provide full-chain transparency in drug management, ensuring that the source, destination, and accountability of drugs can be tracked [2]. - As of February 2025, the National Medical Insurance Information Platform has collected 21.936 billion traceability codes, covering all 31 provinces in China [2]. Group 2: Impact on Drug Safety - The "code-based procurement" approach has effectively reduced drug quality risks and has led to the identification and punishment of illegal activities such as drug reselling and swapping [2]. - The "code-based settlement" mechanism has facilitated precise supervision of medical insurance funds, recovering 27.5 billion yuan in fraudulent claims and identifying 2,008 fraudulent institutions [2]. Group 3: Challenges and Recommendations - Despite advancements, there are still weaknesses in drug safety management, particularly in post-market supervision and the classification of different drug types [3]. - The need for a refined classification and grading management system for various drug types, especially high-risk drugs, is emphasized to prevent treatment failures and adverse reactions [3]. - Recommendations include enhancing the drug traceability system, training specialized personnel, and establishing comprehensive legal frameworks to support the system [5].

Core Points - The new regulation mandates that from July 1, 2023, medical institutions must scan drug traceability codes before settling with medical insurance funds, enhancing drug safety [1] - By January 1, 2026, all medical institutions are required to fully collect and upload drug traceability codes, establishing a comprehensive tracking system for pharmaceuticals [1] - The traceability code acts as a unique electronic identity for each drug, ensuring that each box of medication has a single sales record, thus preventing counterfeit and swapped drugs [1] Industry Impact - The integration of drug traceability codes with medical insurance is significant for public drug safety, effectively combating issues like "returned drugs" and fraudulent transactions [2] - The traceability system allows for precise monitoring of high-priced drugs, ensuring they are used appropriately and reach the patients in need [2] - The National Medical Insurance Administration has already demonstrated the effectiveness of this system by investigating the traceability codes of specific drugs, thereby safeguarding both drug safety and insurance funds [2] Public Engagement - Consumers are encouraged to actively participate in ensuring their own drug safety by following six key practices when purchasing medications, including verifying the presence of traceability codes and scanning them for authenticity [3] - The promotion of drug traceability codes is essential, with the goal of making the scanning process a standard practice in every drug transaction [3] - Strengthening regulatory measures around drug traceability codes will help close potential loopholes and enhance public health protection [3]

Core Viewpoint - Starting from today, all designated medical institutions in China must scan the "drug traceability code" for drug sales, which is essential for medical insurance fund settlement. By January 1, 2026, all medical institutions are required to fully collect and upload drug traceability codes [1][10]. Drug Traceability Code Scanning Process - The process for scanning the drug traceability code involves accessing the National Medical Insurance Bureau's WeChat public account, selecting the service option, and entering the drug traceability information query page [1][2]. - The scanning results can yield four possible outcomes, ranging from no sales information found to multiple sales records indicating potential issues with the drug's legitimacy [3][4][5]. Types of Traceability Codes - Traceability codes are categorized into three levels: large code, medium code, and small code, each serving different packaging units and purposes [6][7][9]. - The smallest traceability code is assigned to individual boxes, while medium and large codes are used for larger packaging, facilitating easier verification for companies [9]. Implementation and Regulation - Since the nationwide implementation of drug traceability code collection began in 2024, a total of 39.885 billion traceability codes have been aggregated [10]. - The National Medical Insurance Bureau has identified and is addressing fraudulent activities related to the sale of "returned drugs" and other illegal practices [15][17]. Consumer Rights and Responsibilities - Consumers are advised to follow six principles when purchasing drugs to protect their rights, including ensuring the presence of a traceability code, verifying the code during payment, and retaining receipts [18].

Group 1 - The core viewpoint is that starting from July 1, designated medical institutions must scan traceability codes for drug sales to process medical insurance settlements, which aims to combat drug trafficking and fraudulent insurance claims [1][4]. - The traceability code acts as an "identity card" for drugs, recording the entire process from production to sale, with a total of 39.885 billion traceability codes collected since the national rollout in 2024 [4][6]. - There is a growing consensus in society that "selling drugs requires scanning, buying drugs requires verification," with approximately 5 million people checking drug authenticity daily [4][6]. Group 2 - The National Medical Insurance Administration has identified a number of serious fraudulent cases, including organized efforts by pharmaceutical wholesalers to launder "returned drugs" and sell them as legitimate products [6]. - In August, the focus will be on designated medical institutions and pharmacies, using traceability code clues to crack down on illegal acceptance of returned drugs [8]. - The traceability code can be scanned via the National Medical Insurance Administration's WeChat public account to obtain detailed sales information about the drug [9].

Core Viewpoint - The implementation of the drug "QR code settlement" system nationwide marks a significant shift in drug regulation and consumer protection in the pharmaceutical industry, enhancing traceability and accountability in drug sales and distribution [1][3][6]. Group 1: Implementation and Impact - As of July 1, 2025, all pharmacies and medical institutions must scan drug traceability codes for insurance reimbursement, with non-compliance leading to inability to process payments [1][3]. - The National Medical Insurance Administration has collected 41.828 billion traceability code records, covering over 99% of medical institutions, with approximately 5 million consumers checking drug authenticity daily [3][4]. - The transition period until the end of 2025 allows for the management of existing non-coded drugs, but by January 1, 2026, all institutions must fully implement traceability code collection [4][6]. Group 2: Consumer Protection and Awareness - The traceability code serves as an "electronic ID" for each drug, ensuring that each code is unique and can only be scanned once for sale, helping to identify counterfeit or returned drugs [3][4]. - Consumers are encouraged to verify the traceability codes and avoid purchasing drugs without them, enhancing their role in monitoring drug safety [4][5]. Group 3: Industry Challenges and Costs - The new regulations may lead to short-term cost increases for pharmaceutical companies and pharmacies due to the need for system upgrades and compliance with new operational processes [5][7]. - Pharmacies and medical institutions must invest in technology to ensure compliance with the traceability code requirements, which may disproportionately affect smaller entities [7][8]. Group 4: Long-term Benefits - The traceability system is expected to combat the issue of "returned drugs," thereby protecting market order and enhancing brand reputation for pharmaceutical companies [8]. - In the long run, the traceability code system is anticipated to improve the overall health and sustainability of the pharmaceutical industry by ensuring quality and safety in drug distribution [8].

Core Viewpoint - The implementation of drug traceability codes starting from July 1 aims to enhance the management of medical insurance drugs and combat fraud in the healthcare system [1][3][4]. Group 1: Drug Traceability Code Implementation - From July 1, all designated medical institutions must record the full traceability information of drugs sold under medical insurance, adhering to the standards of "full collection, code-based settlement, and code-based payment" [3][4]. - The traceability code serves as a unique "electronic ID" for each drug, ensuring that each box of medicine has a distinct code that cannot be replicated [4][5]. - By January 1, 2026, all medical institutions must fully upload traceability codes, establishing a complete drug traceability loop [4][5]. Group 2: Consumer Protection and Rights - Consumers can verify the sales history of a drug using the traceability code, which can serve as crucial evidence for protecting their rights [7][8]. - The National Medical Insurance Administration provides guidelines for consumers to ensure they only purchase drugs with valid traceability codes and to report any suspicious sales [8][9]. - Legal provisions allow consumers to claim significant compensation for purchasing counterfeit or substandard drugs, reinforcing consumer rights [8][9]. Group 3: Impact on the Pharmaceutical Industry - The traceability system is expected to reduce management costs by approximately 20% and improve operational efficiency by over 30% for pharmaceutical companies [10]. - The comprehensive application of drug traceability codes is anticipated to create a healthier and more compliant ecosystem in the pharmacy industry, facilitating a smoother implementation of policies [10][11]. - The transition to a digitalized pharmaceutical industry is seen as a new starting point for the sector, potentially leading to a surge in innovative drug listings [11].

Group 1 - The core viewpoint of the articles emphasizes the implementation of a drug traceability code system, which is mandatory for all pharmacies and medical institutions in China, affecting the entire pharmaceutical supply chain [1][2][4] - The traceability code serves as an "electronic ID" for each drug, ensuring that each box of medicine has a unique scan record, which helps in identifying counterfeit or returned drugs [2][3] - As of June 16, 2023, the national medical insurance platform has collected 41.828 billion traceability code records, covering over 99% of medical institutions, with approximately 5 million consumers checking drug authenticity daily [2][3] Group 2 - The new system will transition to a "scan for settlement" model by July 1, 2025, and full traceability code coverage is expected by January 1, 2026, marking a significant shift in drug distribution and medical insurance regulation [2][4][5] - The introduction of the traceability code is expected to increase compliance costs for pharmacies and medical institutions, as they will need to upgrade systems and processes to ensure proper scanning and data collection [6][7] - The traceability code is anticipated to help pharmaceutical companies combat the issue of "returned drugs," thereby protecting brand reputation and maintaining profit margins, while also promoting sustainable development in the industry [7]

Group 1 - The implementation of drug traceability codes will reshape the management ecosystem of medical insurance drugs in China, with a focus on preventing fraud and ensuring compliance [2][4][9] - Starting from July 1, 2025, new drug purchases must be scanned for traceability codes to settle medical insurance claims, while existing unmarked drugs will be managed under a transitional "unmarked library" [3][4] - By January 1, 2026, all medical institutions must fully collect traceability codes, establishing a complete drug traceability loop [3] Group 2 - The unique design of traceability codes, which includes features like uniqueness and detailed management, is crucial for regulatory effectiveness [2] - As of March 20, 2025, over 350 pharmaceutical production and distribution companies have connected to the traceability platform, with nearly 8,000 companies inquiring about the upload and query process [2] - The traceability code system is expected to reduce management costs by 20% and improve operational efficiency by over 30% for companies integrating with the national traceability platform [7] Group 3 - Consumers can verify drug sales and protect their rights using traceability codes, which should only have one sales record [6] - The current legal framework provides strong protections for consumers against fraud, allowing for significant compensation in cases of selling counterfeit drugs [7] - The comprehensive application of traceability codes is seen as a new starting point for the digital transformation of the pharmaceutical industry [9]

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index (000683) increased by 0.93% as of July 1, 2025, with notable gains from stocks such as Rongchang Biopharmaceutical (688331) up 7.21% and Shanghai Yizhong (688091) up 3.61% [1] - Starting July 1, 2025, a new policy mandates that all drug sales must include a verification code for medical insurance reimbursement, with full traceability of drug codes required by January 1, 2026, which is expected to enhance drug circulation regulation and impact the entire pharmaceutical industry chain [1] - The current bull market in innovative drugs is driven by the improvement of China's pharmaceutical innovation capabilities, with a trend towards international collaboration in new drug development expected to enhance profitability and market potential for Chinese pharmaceutical companies [2] Group 2 - As of June 30, 2025, the top ten weighted stocks in the Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index accounted for 50.3% of the index, including companies like United Imaging Healthcare (688271) and BeiGene (688235) [3] - The Sci-Tech Biopharmaceutical ETF closely tracks the performance of the Shanghai Stock Exchange Sci-Tech Innovation Board Biopharmaceutical Index, which includes 50 large-cap companies in various biopharmaceutical sectors [2]

Core Points - Starting from July 1, medical institutions designated for medical insurance must scan the drug traceability code before settling with the medical insurance fund; by January 1, 2026, all medical institutions must fully collect and upload drug traceability codes [1] - The drug traceability code serves as the "electronic ID" for drugs, ensuring that each box of medication has a unique scanning record, preventing the sale of counterfeit, returned, or swapped drugs [1] - Consumers can use the National Medical Insurance Administration's WeChat public account to scan the traceability code on drug packaging to obtain detailed sales information [1] Drug Traceability Code Usage - To check drug sales information, consumers can follow these steps: access the National Medical Insurance Administration's WeChat public account, navigate to the drug traceability information query, and scan the QR code or barcode on the drug packaging [1] - If the query shows "only 1 sales record," it indicates the drug is legal and compliant if it matches the consumer's purchase; otherwise, it may indicate the drug has been resold, potentially being a returned, swapped, or counterfeit drug [2] - If the query shows "2 or more sales records," it suggests the drug has been sold previously; information obtained from non-official software or apps may not reflect the drug's medical insurance sales settlement information [3]