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As a licensed “wholesale dealer”, may I set up a small laboratory in my warehouse to conduct quality spot checks on medicines?

A complete explanation of the regulatory basis, Drew Tang’s recommendations and risk alerts. The original material dates from 2025; read it alongside the latest official requirements.

Original guide, 2025 edition: These FAQs are provided for topic-based reference and have not all been individually checked against current rules. Please confirm fees, personnel, renewal, changes and product requirements against the professional in-depth guide for the relevant licence type and the official requirements in force at the time.

Drug Office, Department of Health Chinese Medicines Board

Q82 · Category B: Licence types and scope of application (Q51-Q100)
You may set up a laboratory, but doing so is not straightforward. If the results of tests conducted by the laboratory will be used to decide whether a batch of medicines may be released for sale, the laboratory itself must be treated as part of the medicine manufacturing process and must comply with GMP standards. Your company may also need to apply for an additional Manufacturer of Pharmaceutical Products licence, at least for the testing activities. If the laboratory is used only for internal monitoring, preliminary screening or non-decisive testing (such as checking the appearance of packaging), and is not used as the formal basis for quality release, operations may be more flexible. Even so, you must ensure that laboratory operations do not cause contamination or mix-ups involving stored medicines, and that clear procedures are included in your Quality Management System (QMS).

📘 Regulatory basis

Under GMP guidelines, any activity that tests medicine quality and is used as a basis for release is “quality control” and constitutes a regulated manufacturing activity. A wholesaler’s responsibility is to ensure quality during “distribution”, not quality control during “manufacture”.

📗 Drew Tang's recommendations

For most wholesalers, a more practical and compliant approach is to outsource medicine quality testing to a third-party contract laboratory holding a Manufacturer of Pharmaceutical Products licence and having GMP qualifications. This provides legally valid test reports without the substantial cost and complexity of establishing and maintaining a GMP laboratory. We can recommend qualified local contract laboratories.

📕 Risk notice

Do not conduct formal release testing of medicines in an in-house laboratory that does not meet GMP standards. The test results are legally invalid and the regulator may regard the testing as illegal manufacture. If the original manufacturer's medicines have a quality problem, your own test report will provide no legal protection.

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