China-based Tianjin Tianyao Pharmaceutical Co., Ltd (SHA: 600488) has been fined RMB 27.72 million (USD 3.77 million) by the Tianjin Administration for Market Regulation. The fine was imposed for the “abuse of market domination of carmustine in China by selling the product at an unfairly high price,” which violates Item (1), Paragraph 1, Article 17 of the Anti-monopoly Law pre-amendment. The antimonopoly law enforcement authority has ordered the company to cease the illegal act and imposed a fine equivalent to 2% of the product’s sales from 2019.
Impact on Company
Despite the significant fine, the administrative penalty will not trigger a forced delisting from the Shanghai Stock Exchange due to a major violation. However, the company will see a decrease in net profits to RMB 17.19 million (USD 2.4 million). This penalty underscores the regulatory scrutiny on market practices and the enforcement of anti-monopoly laws in China.
Company Profile
Tianjin Tianyao Pharmaceutical is a leading pharmaceutical company in China, specializing in the production and distribution of various pharmaceutical products, including carmustine. The company’s market position and pricing strategies have come under regulatory review, highlighting the importance of compliance with anti-monopoly regulations.-Fineline Info & Tech
