Shanghai Pharmaceuticals (SPH; HKG: 2607; SHA: 601607), a leading pharmaceutical distribution company based in China, has recently come under regulatory scrutiny. Following the earlier reports that C-suite executives were under investigation, the company has now announced receiving an Administrative Penalty Decision letter from Shanghai’s Market Supervision Administration regarding its wholly-owned subsidiary, SHP No.1 Biomedical & Pharmaceutical Co., Ltd.
The company was determined to have sold injection polymyxin B sulfate at prices deemed to be unfairly high, in violation of the Anti-Monopoly Law. Pursuant to Article 57 and Article 59 of the Anti-Monopoly Law, the bureau has ordered SHP No.1 Bio to halt the unlawful activities. The bureau will confiscate illicit earnings of RMB 337,877,876.17 (USD 47.5 million) and impose a fine of 3% of the 2022 sales revenue, totaling RMB 124,198,555.94 (USD 17.5 million).- Flcube.com
