BEIJING, Aug 9 (Reuters) - Sinopharm unit China National

Medicines on Friday said it does not have any

business dealings or relations with Shanxi Osteorad Biomaterial

Co, according to a filing to the Shanghai Stock Exchange.

Shanxi Osteorad is suspected of illegally purchasing human

remains and limbs to be used as raw materials for the production

of "allogeneic bone implantable materials", government-backed

media The Paper reported previously.

The case involved the illegal "theft" and sales of thousands

of bodies, The Paper reported, adding local authorities had

started an investigation.

Shanxi Osteorad does not have an official website and could

not be immediately reached for comment.

In the filing, China National Medicines said media reports

of its involvement with Shanxi Osteorad are "incorrect" and that

the company's production and operation activities remain normal.