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Simcere Unit Fined Over Vaccine

Court is imposing an additional fine on Simcere's Jiangsu Yanshen Biological Technology Stock Co. business for making a substandard rabies vaccine.

BEIJING (AP) -- Simcere Pharmaceutical Group of China said Tuesday that a court is imposing an additional fine on its Jiangsu Yanshen Biological Technology Stock Co. business for making a rabies vaccine that did not meet manufacturing standards.

Jiangsu Yanshen was found liable for making and selling inferior products, and fined 4.6 million yuan ($690,000), the company said. In May, Chinese authorities fined the company 25.6 million yuan ($3.7 million) over the same product. Six members of Jiangsu Yanshen's management were also found guilty and received individual punishments. The company's operations are suspended and Simcere said it did not know when Jiangsu Yanshen will be able to start making vaccines again.

The fine was handed down by the People's Court of Tianning District, Changzhou City, and will be paid with penalties and confiscated revenue from sales of the substandard vaccine. The previous fine was imposed by the Changzhou Food and Drug Administration.

The fines and penalties are related to batches of human-use rabies vaccines that were made in 2008. Simcere bought a 52.5 percent stake in Jiangsu Yanshen in October 2009. Simcere said no side effects have been reported.

Simcere shares rose 42 cents, or 3.8 percent, to $11.38 in morning trading. Earlier they reached an annual high of $11.46.