echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Medical News > Latest Medical News > Beware of monopolies! Drug price behavior should pay attention!

    Beware of monopolies! Drug price behavior should pay attention!

    • Last Update: 2020-06-01
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    The pharmaceutical industry has been a focus area for antitrust enforcementin the first half of this year, according to relevant media reports: before less than 5 yuan a bottle of nitrate glycerin tablets, the price recently soared to nearly 50 yuan a bottleSince this year, there have been a lot of nitrate glycerin tablets in the sharp increase in prices and out of stock newsAs a "life-saving medicine" for patients with cardiovascular disease, the sharp increase in the price of nitroglycerin tablets and the shortage of stock has also aroused the central leadership's attention, the relevant parties said, "This is an important issue of people's livelihood, to do a good job of drug supply and stable prices, must not be out of stock, must not be arbitrary price increases." And on August 22 ndea this year, the State New Office held a regular briefing on measures to strengthen the supply of commonly used drugs and stabilize prices, the Deputy Director of the National Health and Health Commission Zeng Yixin pointed out that in the future, through the improvement of the shortage of drug procurement policies, serious investigation and punishment of raw materials monopoly, market manipulation and other illegal and illegal measures to solve the problem of drug shortageantitrust seems to be a strange term for pharmaceutical companiesSince the current Antimonopoly Law of the People's Republic of China came into force on August 1, 2008, it has played an important role in preventing and suppressing monopoly behavior, protecting fair competition in the market, improving the efficiency of economic operation, safeguarding consumer interests and social public interests, and promoting the healthy development of the socialist market economyearly 2018, the State Administration of Market Supervision and Administration was establishedAs China's unified anti-monopoly law enforcement agency, the General Administration of Market Supervision has replaced the anti-monopoly enforcement system of the three major departments (Ministry of Commerce, National Development and Reform Commission, State Administration for Industry and Commerce), and the Anti-Monopoly Bureau under the General Administration of Market Supervision assumes the respective functions of the Ministry of Commerce, the National Development and Reform Commission and the General Administration of Industry and CommerceThen, the monopoly is divided into which kinds of situations, the author briefly combed as followsmonopoly is divided into two forms: horizontal monopoly and vertical monopolyhorizontal monopoly refers to the horizontal alliance of many enterprises with competitive relationship in the same industry to achieve market advantage and thus exclude and restrict the behavior of competitionVertical monopoly refers to the exclusion and restriction of competition carried out by a combination of businesses in the same industry or brand at different economic levels and without direct competition, the most common manifestation of which is the manipulation by producers of the prices of resold products by downstream dealersin order to let everyone more clearly understand the difference between horizontal monopoly and vertical monopoly, this comprehensive related information for example: a raw material drug by Factory A exclusive production, B enterprise in order to obtain exclusive rights, and A factory signed a "agent sales agreement", monopolized the raw material sales in the countryThe contents of the agreement are mainly: B company's sole agent A enterprise production of raw materials in the domestic sales, only through the consent of Company B, A factory can supply to other manufacturersDuring the period, C enterprises to find B enterprises, want to buy raw materialsB enterprise requirements: must be the market sales price of finished drugs to increase the actual sales price of N more than, wherein the profits to be sharedBecause Enterprise C did not agree, Enterprise B will increase the price of this API sales price dozens of times It is clear that Enterprise B controls the supply of A plant, and B enterprise to C enterprise supply or not by their own way, that is, a vertical monopoly For the monopoly party, to use its superior position, to interrupt supply as a threat, forcing downstream operators to comply with their trading conditions, and thus the implementation of the control of the source of goods behavior, this behavior should belong to a vertical monopoly! The unreasonable requirement of B enterprise seeking to raise prices and divide profits in Factor C belongs to horizontal monopoly, according to relevant data, horizontal monopoly includes: fixed price, market division, joint production reduction, boycott and so on And above B enterprises to raise prices, so as to Control the Products of The C Plant, belongs to the horizontal monopoly! and for pharmaceutical companies, often to the agents to issue price control requirements, through the price to manage agents, pharmaceutical companies are intended to encourage competition between agents, to avoid the minimum price to stifle the market competition environment At the same time, limiting the minimum price, on the one hand, can ensure that agents profit, on the other hand, also help to regulate the market, to prevent agents from "sprang" Therefore, in the actual normative behavior, many people think that it is common not to allow sales below a certain price, but from the antitrust point of view, this is suspected of monopoly in recent years, from the area of punishment, in the entire pharmaceutical industry, RAW materials are the focus of the area of punishment The industry has the characteristics of high market concentration and high market access threshold, at the same time, according to the relevant experts concluded: "From the point of view of the punished business conduct, the most punished business conduct in the case is the refusal of trading without justification (abuse of dominant position), and fixed prices (horizontal monopoly agreements), such business behavior should become the focus of enterprises from the anti-monopoly law self-examination." from the law enforcement situation of anti-monopoly law enforcement agencies in recent years, the monopoly behavior that has been investigated has been investigated in addition to the concentration of operators with the effect of excluding or restricting competition, there are monopoly agreements involving prices, abuse of market dominance, abuse of administrative power to exclude restrictions on competition, etc., has basically covered the main types of anti-monopoly enforcement whether horizontal or vertical is a form of monopoly, it must be considered whether the operator is in a monopoly or market dominance, or whether the same multi-operator steaming in combination whether there is a monopoly or market dominance Therefore, before making every decision, pharmaceutical companies must carefully study the relevant legal documents Medical behavior is highly sensitive, medical personnel must be in a serious and responsible attitude, carefully study the relevant laws and policies, do not touch the red line.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.