China to expand drug traceability code system into new sectors

China's drug traceability code system will be expanded to support corporate financing, pharmaceutical innovation, and other applications, moving beyond its original role of strengthening oversight of medical insurance funds, an official with the National Healthcare Security Administration said this week.

The drug traceability code is a unique serial number assigned to each packaged unit of medication or medical consumable. The administration launched the system in April 2024 to help crack down on illegal practices, such as the resale of medications purchased through medical insurance and the misuse of insurance cards.

Cao Wenbo, deputy director of the administration's medications big data center, said at a recent event in Beijing that the system has so far collected more than 180 billion drug traceability code records from the sales stage and more than 670 billion records from drug production and distribution.

He said the data — combined with medical insurance settlement records and broader healthcare service data — is expected to form high-quality datasets that can support scientific research and industrial innovation.

Drug traceability code records can also serve as financial credentials. In one case, a State-owned enterprise in Wenzhou, Zhejiang province, recently secured 9.21 million yuan ($1.36 million) in financing from a local bank after the bank verified nearly 140,000 drug traceability code records linked to the company's transactions.

Cao added that authorities are also exploring ways to use the system to make healthcare services more convenient for the public, such as by sending medication reminders and providing easier access to drug labeling information.

Guo Yuhe contributed to the story.