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China fines pharma firms over $50 million for price-fixing

By CHENG YU | chinadaily.com.cn | Updated: 2025-06-13 13:24
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China has imposed a combined fine of 362 million yuan ($50.4 million) on four pharmaceutical companies and related individuals for price-fixing in a high-profile antitrust case, the country's market regulator said on Friday.

The State Administration for Market Regulation said it had asked its Tianjin bureau to investigate and penalize the case, which it called a major and typical monopoly violation in the pharmaceutical sector.

The probe found that, starting in November 2021, Jinyao Pharmaceutical Co, Zhejiang Xianju Pharmaceutical Co, Jiangsu Lianhuan Pharmaceutical Co, and Xi'an Guokang Ruijin Pharmaceutical Co coordinated price hikes for dexamethasone sodium phosphate, a widely used anti-inflammatory drug.

An executive surnamed Guo facilitated the agreement through meetings, site visits, and communications that led the four companies to reach a verbal pact to halt price competition and raise prices in unison.

The companies subsequently suspended external supply and jointly increased prices. Between February 2022 and March 2024, the price of the raw material soared from 8,000 yuan per kilogram to 13,000 yuan, according to the investigation.

The regulator said the conduct restricted market competition, drove up prices of both the raw material and related drug formulations, and harmed consumers' interests and public welfare.

The regulator thus imposed the maximum individual fine of 5 million yuan on Guo, while the four companies were collectively fined 355 million yuan, including the confiscation of illegal gains and penalties equal to 8 percent of their previous year's sales. Four company executives were also fined 600,000 yuan each for their roles in the collusion.

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