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In recent years, in order to ensure the healthy development of the pharmaceutical market, China's anti-monopoly department has frequently taken action to strengthen rectification
.
Shortly after the start of 2022, the domestic anti-monopoly department issued a huge fine to a company in the pharmaceutical field
.
On January 5, the State Administration for Market Regulation issued a penalty decision
.
According to the announcement, on December 31, 2021, the State Administration for Market Supervision made an administrative penalty decision on the establishment of a joint venture between a pharmaceutical company in Ningbo and a logistics company that failed to declare the illegal implementation of the concentration of operators.
The decision on the administrative penalty is now announced
.
It is reported that the fined pharmaceutical companies are mainly engaged in the production and sales of cardiovascular, skeletal and muscle drugs and other drugs
.
According to the information of the State Administration for Market Regulation, the above-mentioned two enterprises were fined 500,000 yuan respectively after being investigated for being suspected of monopoly because they failed to declare and illegally implement the concentration of business operators in accordance with the law
.
It is understood that "concentration of operators" is a type of monopolistic behavior, and operators may abuse their dominant market position, infringe the interests of other operators and consumers, and then disrupt the order of market competition
.
According to the anti-monopoly law, mergers, equity acquisitions, and other methods may lead to concentration of operators
.
It is worth mentioning that the fine of 500,000 yuan is not a small amount, and it is the upper limit of the penalty imposed on the concentration of operators under the Anti-Monopoly Law
.
It can be seen that the severity of the punishment this time also reflects China's firm attitude towards market anti-monopoly
.
In fact, it is not uncommon for pharmaceutical companies to be fined for monopoly.
For example, on April 15, 2021, the State Municipal Bureau of Supervision made an administrative penalty decision on a large pharmaceutical company in Jiangsu in accordance with the relevant provisions of the Anti-Monopoly Law, and imposed a fine of 2018 on it.
Annual sales of 25.
467 billion yuan and 3% of the fine, totaling 764 million yuan
.
Among the pharmaceutical companies punished for monopoly, the API companies can be said to be the "regular customers" who are fined
.
Judging from the information on API anti-monopoly punishment cases in the past ten years, more than 20 pharmaceutical companies have been fined more than 500 million yuan for suspected monopolistic behavior.
Among them, there are many individual cases with high fines.
Bills of 100 million yuan, and even API companies were fined 325.
5 million yuan.
The data is quite astonishing
.
From the perspective of the industry, the frequent occurrence of monopolistic behavior of API companies is related to the market structure of the industry.
According to public information, there are 1,500 kinds of APIs in finished medicines in China, of which only 1 company has obtained the approval qualification for production, and 44 kinds of APIs can be produced.
Only 2 companies can produce APIs, and only 3 companies can produce 40 kinds of APIs, which shows the high concentration of API manufacturers
.
"Manufacturers are actually reluctant to spend the time and cost to sell their products, and many of them sell APIs directly to underwriters
.
In the dealership, if the underwriters raise the price without authorization to sell to the drug factory, it is easy to cause problems.
Monopoly situation
.
" On November 18, 2021, the State Anti-Monopoly Bureau was established
.
On the same day, the "Anti-Monopoly Guidelines in the Field of APIs" was released, which became the supporting enforcement rules of the "Anti-Monopoly Law" to prevent and stop monopolistic behaviors in the field of APIs, further clarify the market competition rules, maintain the market competition order in the field of APIs, and protect the Consumer interest and social public interest
.
With the release of this guideline, the healthy development of the API market will be further guaranteed
.
Conclusion In the past, the illegal cost of API monopoly was low, which made many manufacturers still take risks.
Now, with the improvement of China's anti-monopoly efforts, the illegal cost has greatly increased, which may have a greater deterrent effect on pharmaceutical companies, and is expected to promote the entire pharmaceutical industry.
The market develops in a healthy and orderly manner
.
.
Shortly after the start of 2022, the domestic anti-monopoly department issued a huge fine to a company in the pharmaceutical field
.
On January 5, the State Administration for Market Regulation issued a penalty decision
.
According to the announcement, on December 31, 2021, the State Administration for Market Supervision made an administrative penalty decision on the establishment of a joint venture between a pharmaceutical company in Ningbo and a logistics company that failed to declare the illegal implementation of the concentration of operators.
The decision on the administrative penalty is now announced
.
It is reported that the fined pharmaceutical companies are mainly engaged in the production and sales of cardiovascular, skeletal and muscle drugs and other drugs
.
According to the information of the State Administration for Market Regulation, the above-mentioned two enterprises were fined 500,000 yuan respectively after being investigated for being suspected of monopoly because they failed to declare and illegally implement the concentration of business operators in accordance with the law
.
It is understood that "concentration of operators" is a type of monopolistic behavior, and operators may abuse their dominant market position, infringe the interests of other operators and consumers, and then disrupt the order of market competition
.
According to the anti-monopoly law, mergers, equity acquisitions, and other methods may lead to concentration of operators
.
It is worth mentioning that the fine of 500,000 yuan is not a small amount, and it is the upper limit of the penalty imposed on the concentration of operators under the Anti-Monopoly Law
.
It can be seen that the severity of the punishment this time also reflects China's firm attitude towards market anti-monopoly
.
In fact, it is not uncommon for pharmaceutical companies to be fined for monopoly.
For example, on April 15, 2021, the State Municipal Bureau of Supervision made an administrative penalty decision on a large pharmaceutical company in Jiangsu in accordance with the relevant provisions of the Anti-Monopoly Law, and imposed a fine of 2018 on it.
Annual sales of 25.
467 billion yuan and 3% of the fine, totaling 764 million yuan
.
Among the pharmaceutical companies punished for monopoly, the API companies can be said to be the "regular customers" who are fined
.
Judging from the information on API anti-monopoly punishment cases in the past ten years, more than 20 pharmaceutical companies have been fined more than 500 million yuan for suspected monopolistic behavior.
Among them, there are many individual cases with high fines.
Bills of 100 million yuan, and even API companies were fined 325.
5 million yuan.
The data is quite astonishing
.
From the perspective of the industry, the frequent occurrence of monopolistic behavior of API companies is related to the market structure of the industry.
According to public information, there are 1,500 kinds of APIs in finished medicines in China, of which only 1 company has obtained the approval qualification for production, and 44 kinds of APIs can be produced.
Only 2 companies can produce APIs, and only 3 companies can produce 40 kinds of APIs, which shows the high concentration of API manufacturers
.
"Manufacturers are actually reluctant to spend the time and cost to sell their products, and many of them sell APIs directly to underwriters
.
In the dealership, if the underwriters raise the price without authorization to sell to the drug factory, it is easy to cause problems.
Monopoly situation
.
" On November 18, 2021, the State Anti-Monopoly Bureau was established
.
On the same day, the "Anti-Monopoly Guidelines in the Field of APIs" was released, which became the supporting enforcement rules of the "Anti-Monopoly Law" to prevent and stop monopolistic behaviors in the field of APIs, further clarify the market competition rules, maintain the market competition order in the field of APIs, and protect the Consumer interest and social public interest
.
With the release of this guideline, the healthy development of the API market will be further guaranteed
.
Conclusion In the past, the illegal cost of API monopoly was low, which made many manufacturers still take risks.
Now, with the improvement of China's anti-monopoly efforts, the illegal cost has greatly increased, which may have a greater deterrent effect on pharmaceutical companies, and is expected to promote the entire pharmaceutical industry.
The market develops in a healthy and orderly manner
.
