The National Development and Reform Commission (NDRC) announced in November 2011 that it was imposing large fines on two domestic drug companies for monopoly pricing of raw materials for compound reserpine tablets, a high blood pressure treatment on China’s National Essential Drug List.
The fines were RMB6,877,000 (US$1.08 million) for Shandong Weifang Shuntong Pharmaceutical and RMB152,600 for Shandong Weifang Huaxin Medicine Trade. Their illegal gains will also be confiscated, as provided by the PRC Anti-monopoly Law.
This is the first heavy anti-monopoly penalty in China, and analysts say the case signals government plans to standardise the price-setting system for drugs and crack down on monopolies.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. Readers can contact Zhang Danian at Baker & McKenzie in Shanghai at email@example.com