Four Pharmaceutical Companies Suspended from Military Procurement Amid IPO Filings

On March 3, the Army Procurement Network released a batch of "Military Procurement Suspension List", including four pharmaceutical companies that have been placed on the suspension list:

Beijing Fresenius Kabi Pharmaceutical Company Limited,Qilu Pharmaceutical Co., Ltd.,Yichang Humanwell Pharmaceutical Co.,Ltd.,Jiangsu Xincheng Pharmaceutical Co., Ltd. (Dissolved)

Jiangsu Xincheng Pharmaceutical Co., Ltd. was originally a wholly-owned marketing company of Hengrui Pharma. InAfter the scandal involving Lei Lipei, the former director of the Anesthesiology Department at Lishui Central Hospital in Zhejiang Province, Hengrui Pharma made a firm decision to dissolve this wholly-owned subsidiary.

It is worth noting that, despite the cancellation of Xincheng Pharmaceuticals, the original legal representativeZhou Yunshu has also long left Hengrui, but hisOther enterprises controlled or managed by the entity have suspended participation in the military procurement activities within the specified scope.

The announcement on the Military Procurement Network shows that the violations of these four pharmaceutical companies are all:In procurement activities, there are suspected violations of regulations and dishonest behavior.

Outcomes for Four Pharmaceutical Companies:

FromMarch 3, 2026AriseSuspended CompanyJoin the ArmyMaterial Engineering ServicesQualification for procurement activities;

During the suspension period,PauseCorporate Legal PersonOther enterprises controlled or managed by the entity participate in the military procurement activities within the specified scope;

During the suspension period,PauseAuthorized RepresentativeActing for other suppliers in participating in military procurement activities within the specified scope;