National centralized drug procurement products exposed for defects; Asia’s largest hospital appoints new president; Eli Lilly accused of offering kickbacks

Zhengzhou University First Affiliated Hospital (ZDYF) is widely referred to as “Asia’s largest hospital” due to its campus size, bed capacity, and other metrics. According to his official resume, Yu Zujian graduated from Huazhong University of Science and Technology in 2001 with a Ph.D. in Internal Medicine (Clinical Medicine). With over two decades of clinical practice, he has long focused on innovative diagnosis and treatment of liver cirrhosis, acute-on-chronic liver failure, and advanced hepatocellular carcinoma. His research on the novel liver failure drug trimetazidine earned Orphan Drug designation from the U.S. FDA. His pioneering real-world study on hepatitis C treatment—and original research on advanced liver cancer and cholangiocarcinoma—has yielded six authorized national invention patents. In November 2024, the People’s Government of Henan Province appointed Yu Zujian as Executive President of Zhengzhou University First Affiliated Hospital. In addition to serving as Deputy Party Secretary and President of ZDYF, he also holds positions including Vice Chair of the Hepatology Branch of the Chinese Research Hospital Association and National Committee Member of the Infectious Diseases Branch of the Chinese Medical Association. In 2021, he was selected as one of Henan Province’s “Outstanding Physicians of Zhongyuan.” 4. Leadership Adjustment at China–Japan Friendship Hospital On August 16, the official website of China–Japan Friendship Hospital announced that Li Tianqing has assumed the post of Party Secretary. Public records indicate Li Tianqing was born in January 1972 and has worked at China–Japan Friendship Hospital for many years, previously serving as Director of the Hospital’s Medical Development Department and concurrently as Director of the Party Office and Head of the Medical Engineering Department. In July 2019, he became Deputy Party Secretary and Discipline Inspection Secretary of the National Center for Cardiovascular Diseases, and concurrently Deputy Party Secretary and Discipline Inspection Secretary of Fuwai Hospital, Chinese Academy of Medical Sciences. In December 2021, he was appointed Executive Director of the Central China Branch of the National Center for Cardiovascular Diseases and Henan Cardiovascular Disease Center. 5. Eli Lilly Accused of Paying Physician Kickbacks On August 12, foreign media reported that Eli Lilly faces allegations from the Texas Attorney General related to kickbacks offered to healthcare personnel during sales of tirzepatide. The complaint alleges that Lilly orchestrated two rebate programs: the “Free Nurse Program” and the “Support Services Program.” Under the “Free Nurse Program,” Lilly provided complimentary patient care services to channel benefits to healthcare staff. The “Support Services Program” involved reimbursing healthcare personnel under the guise of service fees. Prosecutors further allege that such bribery extended beyond tirzepatide to promote other drugs—including insulin glargine and multiple other diabetes therapies—as well as ebglyss, an IL-13 inhibitor approved for atopic dermatitis. Lilly denied all allegations and stated it would vigorously defend itself. A Lilly spokesperson noted that another plaintiff in the case, Health Choice Alliance, had previously filed similar kickback-related accusations against Lilly—each of which was dismissed by the U.S. federal government. 6. Yunnan Baiyao Acquires Traditional Chinese Medicine Decoction Pieces Company for RMB 660 Million On August 15, Yunnan Baiyao announced it will acquire 100% equity of Anguo Juyao Tang Pharmaceutical Co., Ltd. via a wholly owned subsidiary, for a total cash consideration of RMB 660 million. Juyao Tang specializes in the production and sale of traditional Chinese medicine (TCM) decoction pieces—including toxic TCM decoction pieces, directly ingestible TCM decoction pieces, and TCM formula granules. It offers 1,567 decoction piece varieties—the most comprehensive portfolio in the industry—and has secured national standard registration for 240 TCM formula granule varieties.

Eli Lilly, clenching its fist

A pharmaceutical giant with a trillion-dollar market capitalization has launched a fresh crackdown. On August 12, Eli Lilly filed lawsuits simultaneously in federal courts in California and Texas, naming six U.S. companies as defendants. Some of these entities brand themselves as “medical spas,” others as “health clinics,” and still others operate online as “peptide suppliers.” Lilly accuses them of illegally selling retatrutide—a drug not yet approved for marketing anywhere in the world. How potent is this drug? In May this year, Lilly released results from a pivotal Phase III clinical trial: participants receiving the highest dose (12 mg) achieved an average weight loss of 28.3% over 80 weeks—nearly one-third lost at least 30% of their body weight. Such outcomes were previously attainable only through bariatric surgery. Unsurprisingly, the drug has acquired street names on social media—“reta,” “r3ta,” and even the playful moniker “ratatouille” (a nod to the animated film *Ratatouille*). Data from U.S. Customs and Border Protection are alarming: over 690 shipments of illicit GLP-1 class drugs were seized during fiscal year 2025; in July 2026 alone, seizures surged to more than 1,400 batches. Max Denning, Global Vice President of Patient Safety for Lilly’s Cardiovascular & Metabolic Health division, described tracking counterfeit products as akin to playing “whack-a-mole.” “This is a massive problem—and a global one,” he said. “It’s not something we can solve alone.” So Lilly moved beyond warnings—and sued six companies. TONACEA 01 Targeting the Black Market Though modest in scale—six defendants across two states—this litigation carries symbolic weight far exceeding the case itself. Among the six named defendants, Aesthetic Envy Cosmetic Centers is based in California; the remaining five—Astra LLC, Legendary Peptides, Striker Pharmacy, Texas Peptides, and Lone Star Peptide Co.—are all headquartered in Texas. They collectively represent three key black-market business models: compounding pharmacies, medical spas, and online vendors. In effect, Lilly has sued every major consumer-facing channel operating in the illicit market. These defendants employ clever marketing tactics: labeling products as “for research use only” to exploit a regulatory loophole permitting sale of compounds designated solely for experimental purposes. Yet Lilly’s complaint asserts they actually sell directly to consumers—and provide detailed dosing instructions. One defendant even offers an online calculator enabling consumers to self-determine injection doses—a task legally reserved for licensed physicians. Dr. David Hyman, Lilly’s Chief Medical Officer, stated in a press release: “What’s being sold on the black market isn’t medicine—it’s completely unverified, unapproved, and simply not worth the risk.” The FDA hasn’t stood idle either. Since 2024, the FDA has issued warning letters to at least 16 companies claiming to sell retatrutide.

US Supreme Court Rejects Eli Lilly's Challenge to Whistleblower Law

May 18, 2026

The U.S. Supreme Court declined to hear Eli Lilly's appeal against a $183 million Medicaid fraud judgment upheld under the False Claims Act. The ruling confirms private whistleblowers can continue suing on behalf of the government regarding drug rebate violations.

reuters

2026-02-03

Feb. 3 Business Watch: Catalysis start-ups raise money; Lilly strikes deals with 2 biotech firms

2026-03-31

Eli Lilly to Acquire Narcolepsy Drug Developer for $6.3 Billion

2026-04-29

Eli Lilly Investors Eager for Foundayo Insight After Early Launch Data

2026-04-30

Lilly lifts profit forecast as surging demand for weight-loss drugs offsets pricing pressure

2026-04-30

US Premarket Movers for April 30, 2026