He added that the company urgently took steps to identify the source of the tainted capsule batch; recall all such capsules as promptly and thoroughly as possible; and review and impose heightened quality control and assurance measures.

"During our review, we determined that the capsule batch in question was purchased in May 2011 by one of our formerly employed purchasing managers who, in disregard of the company's policies, purchased four million capsules from a non-approved supplier. Due to this incident, his employment with the company was terminated in August 2011, immediately after we had become aware of this purchase. The company did not check the batch in question for the chromium levels at that time since PRC pharmaceutical companies were not required to test their gel capsule inventories and purchases for chromium levels in 2011," he said.

Mr Wang also said recall notices were sent to all of distribution centers and local SFDA offices were notified in all provinces. "Each distribution center is required to report to the company's management daily about the progress made in recalling all batches found to be manufactured using the tainted gel capsules," he said.

The company's quality control staff is also in process of completing a self-administered inspection of all drugs utilizing capsules as delivery method and capsule samples acquired during the period from June 2009 to April 2012.