Ministry of Public Security to crack down on CSO enterprises a batch or exit the market
Last Update: 2020-06-17
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Pharmaceutical Network June 10th, a group of CSO enterprises, or exit the marketThe Ministry of Public Security has stepped in to crack down on CSOenterprises
recently, the National Health and Care Commission Medical administration and hospital authorities issued the "2020 to correct the pharmaceutical purchase and sale of the field and medical services in the wrong wind work points" (hereinafter referred to as "work points")The Work Essentials call for a crackdown on the illegality of pharmaceutical companies colluding with contract marketing organizations (CSO) companies to cash in on fictitious fees to cover illegal marketing costsFocus on key areas such as pharmaceutical purchase and sale, strengthen anti-unfair competition and advertising supervision and enforcement, and increase the investigation and punishment of commercial bribery, false propaganda,illegal advertisingand other actsLed by the State Administration of Market Supervision, the National Health and Health Commission and the Ministry of Public Security, in cooperation, called for the completion of the task by the end of OctoberIt is understood that the recent CSO enterprise violations many times in the industryNow in May, the State Administration of Taxation, Fujian Provincial Taxation Bureau issued eight consecutive announcements, the Yantian HongkangMedical DevicesCo., Ltdand other eightenterprisessuspected of false invoicing for pharmaceutical enterprises According to Thesaberg Blue Instruments, the above-mentioned enterprises have invoiced a total of 545 copies, involving an amount of more than 44 million yuan In April this year, the State Administration of Taxation MaAnshan City Tax Bureau issued the "Major tax violations of the information announcement march 2020" shows that 51 enterprises are suspected of false invoicing, of which 24 are pharmaceutical enterprises or related information and service enterprises According to Thesaberg Blue Equipment statistics, 51 enterprises are suspected of false invoicing more than 250 million yuan, of which 24 pharmaceutical-related enterprises are suspected of false lying about 120 million yuan For example, the State Administration of Taxation Maanshan City Tax Bureau inspection found that between December 2017 and December 2018, a medical science and technology service center in Ma Anshan falsely opened 79 false general invoices, the total face value of 6.6125 million yuan After the two-vote system, a large number of CSO enterprises disappeared
"CSO" in English known as "Contract Sales Organization", meaning is the contract sales organization, can be generally understood as drug or medical device marketing to provide specialized services and consulting intermediary trading platform Compared to direct sales by production enterprises, Pharmaceuticals CSO's core competencies lie in specialized technology, sales and training teams and personnel Ability to develop long-term coordination and partnerships with key stakeholders such as large customers and government departments But after the two-vote system, a large number of CSO companies disappeared from the market, according to the Pharmaceutical CSO Alliance data show that from the "two-vote system" to August 2018, a total of nearly 40,000 pharmaceutical CSO companies disappeared, accounting for 25.4% of the total number of Pharmaceutical CSO companies in China at that time "Finance and Tax Forum" has published the "two-vote system of pharmaceutical CSO company's compliance operation and fiscal and tax risk" article analysis, in the context of the two-vote system and the increase in the reform, more and more CSO enterprises living by false invoicing become the focus of the audit According to the above article analysis, before the implementation of the "two-vote system", whether it is self-employed, high open return, commission settlement needs to pass through the ticket ingress or affiliated companies to carry out the transition and circulation of funds Now, because the invoice can only be issued in circulation "one end" and "one tail" to carry out, which led to the above-mentioned process can only be completed by the production enterprise itself Therefore, in the past for the production enterprises to provide invoices of the gray business will be severely depressed, many domestic ticket ingress will face serious survival challenges At the same time, in the context of the comprehensive "camp reform and increase", China's law enforcement departments have increased the investigation and prosecution of false invoicing, the future will have more false invoicing to survive the pharmaceutical CSO company will become the focus of the inspection The above article shows that once the pharmaceutical CSO company is investigated by the regulatory authorities, it is facing not only serious administrative penalties, but also reputational damage, which is intangible and difficult to estimate directly Pharmaceutical CSO companies may lose their existing customers, lose consumer trust, and even face market access problems
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