Grand Pharmaceutical Group Limited
0512.HK
2
exclusion reasons
2 themes
Grand Pharmaceutical Group Limited is screened out under 2 exclusion reasons spanning 2 issue categories.
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. It is a statement of values.
Grand Pharmaceutical Group’s major subsidiary, Grand Pharmaceutical China, was fined CNY 136 million (USD 19.2 million) and ordered to disgorge CNY 149 million (USD 21.1 million) in illicit gains by China’s State Administration of Market Regulation for abusing its dominant market position in epinephrine active pharmaceutical ingredients—a total penalty of CNY 285 million (USD 40.3 million). This fine represents 15.8% of the parent group’s net profit for the prior fiscal year. The conduct involved price rigging within a duopoly—only two companies in China held licenses to produce these critical pharmaceutical ingredients since 2010.
The penalty followed a regulatory finding that the subsidiary engaged in monopolistic practices to manipulate pricing. The company’s public disclosure frames the financial impact as non-sustained, but the scale of the penalty—and the disgorgement of illicit gains—reflects a serious breach of market conduct rules. No substantive public commitment to overhaul its compliance systems or governance oversight of its dominant market positions has been articulated by the group.
Grand Pharmaceutical Group Limited is excluded for documented environmental damage stemming from negligent manufacturing practices that resulted in severe public health contamination. The company's subsidiary, Global Pharma Healthcare Private Limited, manufactured adulterated and misbranded eye care products linked to a multistate outbreak of antibiotic-resistant Pseudomonas aeruginosa infections. FDA laboratory testing of intact units from the facility found 18 batches of Artificial Tears and one batch of Artificial Eye Ointment to be non-sterile.
This contamination event, investigated by the FDA and CDC from December 2022, directly led to more than 80 patient infections, 4 deaths, and at least 14 cases of vision loss. The FDA's October 2023 warning letter details significant violations of Current Good Manufacturing Practice regulations, concluding the products were prepared under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health. The company's operations have demonstrated a pattern of negligence resulting in documented ecological harm to human health.
Research Sources
1 organization
Related Exclusions
Wondering what we do invest in?
The Naughty List
A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.