A pharmaceutical sales representative has been sentenced to prison for offering kickbacks to state personnel, according to a judgment recently made public on China Judgements Online.
Court documents reveal that the defendant, identified as Zhao, began working as a sales agent for a Jiangsu-based company under his wife's name in December 2014, taking charge of sales operations in the Qichun area. Starting from late 2015, an individual surnamed Li, who has already been convicted, leveraged his official position to facilitate Zhao's long-term drug sales to a local hospital.
Investigations determined that Zhao generated total profits of 2.018 million yuan from pharmaceutical sales to a hospital in Qichun County. Through Li's coordination, Li's son Ma received commission payments from Zhao for three drug products between April 2016 and the end of 2020, amounting to 600,681 yuan. These facts align with the charges brought by the prosecution.
Further findings showed that Zhao's combined sales profits from a hospital and the county maternal and child health hospital from 2016 to the end of 2020 reached 2.0891 million yuan. After deducting taxes, delivery fees, labor compensation of 369,200 yuan, and assessment-related deductions of 244,000 yuan covering policy, commercial collection, and product promotion evaluations, Zhao's actual personal profit stood at 1.4758 million yuan.
On October 20, 2023, Zhao voluntarily returned his full illicit gains of 1.5 million yuan to the Qichun County Supervision Commission. On March 17, 2026, the People's Court of Qichun County delivered its first-instance verdict, ruling that Zhao's act of providing 600,681 yuan in sales commissions to state personnel constituted the crime of offering bribes. The court sentenced Zhao to one year and three months in prison with a two-year reprieve, alongside a fine of 100,000 yuan. Additionally, the 1.5 million yuan in illegal gains was confiscated and turned over to the state treasury.
The judgment referenced several specific drugs, including Pudilan Xiaoyan Oral Liquid, Xiaoer Chiqiao Qingre Granules, Huanglong Zhike Granules, and Jianwei Xiaoshi Oral Liquid. These products are primarily exclusive offerings of a company that the court documents mention by name twice in passing.
The National Healthcare Security Administration has previously stated that commercial bribery in the pharmaceutical sector fundamentally involves buying access to hospital drug formularies and physician prescription authority through improper benefits. Such practices disrupt normal medical procedures, hinder fair competition, inflate drug prices, and harm patient interests. This shifts pharmaceutical marketing from clinical value toward improper competition driven by high rebates and kickbacks, where bribery levels determine which drugs and medical devices are selected.