Yipinhong Pharmacy Co., Ltd (SHE: 300723), a China-based pharmaceutical company, has made a significant repayment of RMB 266.44 million (USD 36.7 million) to undisclosed buyers as part of a settlement for damages related to the marketing of bromhexine. The company admitted to engaging in anti-competitive practices by ‘colluding with other manufacturers on drug filings and quotations,’ which constituted unfair competition and harmed the legitimate interests of purchasers and other filing manufacturers. These actions occurred during the seventh round of the national volume-based procurement (VBP) program for the drug. Bromhexine, a cough treatment originally developed by French pharmaceutical giant Sanofi, was at the center of the case.
The repayment amount is based on Yipinhong Pharmacy’s sales of bromhexine from 2022 to the present, with the full financial impact on the company’s annual status still to be determined.
Bromhexine was included in the 7th VBP round in July 2022, where four domestic manufacturers, including SSY Group, Yipinhong, Renhe Yikang, and Medcalo, secured tender spots with contracts valued at RMB 240 million, RMB 130 million, RMB 120 million, and RMB 140 million, respectively. The companies won their bids with unusually high offers just 20% below the ceiling price for bromhexine. The procurement cycle for VBP drugs typically spans three years.- Flcube.com
