China’s Shanghai Pharmaceuticals (SPH, HKG: 2607, SHA: 601607) has disclosed that its subsidiary, Shanghai SINE United Pharmaceuticals Co., Ltd., received a written decision of administrative penalty from the Shanghai municipal market regulation bureau, along with an aggregate fine of RMB 166 million (USD 23 million). The penalty stems from actions related to neostigmine that violated the Anti-Monopoly Law, specifically through the formation and implementation of a monopoly agreement.
Violation Details
The investigation, initiated by the Shanghai municipal market regulation bureau in April of last year, revealed that SINE United Pharma, Henan Runhong Pharmaceutical Co., Ltd., and Chengdu Huixin Pharmaceutical Co., Ltd. conspired to inflate the sales price of neostigmine injection. Price increases ranged from 11 to 21 times, significantly harming the legitimate rights and interests of consumers and the public. The companies also carved up the sales markets of domestic public and private hospitals, maintained stable market shares for each party, and excluded or restricted fair market competition.
Penalty and Legal Action
The Shanghai municipal market regulation bureau ordered the three pharmaceutical companies to cease their illegal activities, confiscated their illegal gains, and imposed fines totaling RMB 223 million (USD 31 million). Additionally, individuals personally responsible for reaching the monopoly agreement were fined RMB 500,000 (USD 68,885) each. This enforcement action underscores China’s commitment to maintaining fair competition and protecting consumer interests in the pharmaceutical market.-Fineline Info & Tech
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