FDA on Red Yeast Rice
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My friend who suffers from high cholesterol was recently prescribed red yeast rice supplements by her doctor. She is very happy to be taking a natural supplement as opposed to a drug.
Historically, red yeast rice has been used in China as both for food and a medicine. The use of red yeast rice in China was first documented in the Tang Dynasty in 800 A.D. It is made by fermenting a type of yeast called Monascus purpureus over red rice. In Chinese medicine, red yeast rice is used to lower cholesterol, promote blood circulation and aid digestive problems.
People with high cholesterol are usually given statin medication to help lower their levels of bad cholesterol or LDL. Research indicates that red yeast rice contains substances that are similar to prescription statin medications. One of these substances, called monacolin K, has the same makeup as the drug lovastatin.
The University of Maryland Medical Center cites several studies that support the ability of red yeast rice to lower cholesterol:

