(Yicai) Aug. 10 -- Hengrui Pharmaceuticals has once again refuted a rumor that the maker of cancer drugs and painkillers is being investigated as part of China’s crackdown on corruption in the pharmaceutical sector.

The rumor is unfounded and the company is operating normally, Hengrui told investors through the Shanghai Stock Exchange’s interactive platform yesterday. The police have taken up the case after Hengrui reported the matter.

China’s top anti-graft watchdog launched a year-long campaign late last month to stamp out corruption in the pharmaceutical sector. It has since been rumored that a unit of Hengrui is in the crosshairs. Hengrui told Yicai on Aug. 2 that neither the Jiangsu province-based firm nor its units were under investigation.

Hengrui’s shares [SHA: 600276] closed down 0.8 percent at CNY39.90 (USD5.54) apiece today. The stock has fallen more than 18 percent since July 31.

In addition to Hengrui, a number of other listed drugmakers made announcements yesterday on the impact of the anti-graft campaign. The crackdown has no major bearing on Chuanning Biotech, the firm said, because it mainly sells intermediary products to big companies and state-owned enterprises.

Conba Pharmaceutical said the impact has been minimal as prescription drugs sold in hospitals make up only 20 percent of its total revenue. In the first half, almost 67 percent of its income came from traditional Chinese medicine as retail and online businesses grew.

Contec Medical Systems, a producer of patient monitors and ECG machines, said its products are mainly exported, and the anti-graft campaign will not adversely affect its operations. And Apeloa Pharmaceutical, which makes active pharmaceutical ingredients, said it is operating normally.

Editor: Emmi Laine