（NYSE: SCR)Today Chinese government has arrested the CEO and other six persons from that company



According to Mingpaonews, a Hong Kong based newspaper, a famous Chinese vaccine manufacturer, Jiangsu Yanshen Biotechnology Limited Liability Company (hereinafter referred to as “Jiangsu Yanshen” is accused by China’s State Food and Drug Administration (SFDA) for a long-term deliberate fraud. The fraud resulted into a huge number of questionable vaccine products flew to the market in recent years, and those vaccines may hurt more than 1 million victims in China.

As of March 30, 2010, Jiangsu Yanshen’s pharmaceutical GMP (Good Manufacturing Standards) certification has been revoked and its production is currently suspended. Seven top company executives have been arrested for being liable of manufacturing and supplying vicious vaccine products.

It is reported that a special type of additive was used in the manufacturing process, which could potentially help their vaccines to get a pass from the SFDA’s quality control, though the actual therapeutic effect was greatly reduced. The SFDA investigators estimated that half of their shipped products contain the special additive.

Simcere pharmaceutical group(NYSE: SCR), a public traded company listed on The New York stock exchange, owns 50.77% shares of Jiangsu Yanshen lastyear for 30000000USD.The biggest losers.