Unisplendour Guhan Group Co. Ltd. announced one of its factories will cease to produce at the end of December this year, because the Hunan Hengyang Pharmaceutical Company could not meet the new GMP rules. This is also the first case that public listed companies cease to produce because of failure GMP accreditation.

According to the Unisplendour Guhan Group, the main reason that Hengyang Pharma cannot pass the new GMP regulation is that its planned restructuring plan being interrupted by the local government.

It is well-known to the pharmaceutical companies that the new GMP accreditation states high mandatory standards on manufacturing environment and equipment. And a number of small and medium-sized pharmaceutical enterprises have chosen to shut down production for failing to abide by the new GMP regulations.