Letter prompts new manufacturing concerns for Fosun

A second manufacturing scandal in as many weeks involving alleged falsification of manufacturing records drove down shares of Shanghai Fosun Pharmaceutical Group Co. Ltd. (Shanghai:600196; HKSE:2196) on Aug. 31. According to media reports, self-identified employees of a Fosun research subsidiary accused the subsidiary of fabricating quality control documents in a letter sent to Chongqing FDA, the provincial branch of China's National Medical Products Administration, which prompted an unannounced inspection of the facility on Aug. 23.

Fosun lost 7% to RMB29.20 in Shanghai and slipped 5% to HK$31.70 in Hong Kong Aug. 31. The company acknowledged the letter and the inspection in a statement Aug. 31, but said Chongqing FDA had not yet drawn a conclusion...