The State Administration of Market Supervision imposed administrative penalties on Yangzijiang Pharmaceutical Group Co., Ltd.’s implementation of the monopoly agreement: order Yangzijiang Pharmaceutical Group to stop illegal activities and impose a fine of 3% of its 2018 sales of 25.467 billion yuan, totaling 764 million yuan. ​ ​​​

In November 2019, the State Administration of Market Supervision filed an investigation into Yangzijiang Pharmaceutical Group Co., Ltd. (hereinafter referred to as Yangzijiang Pharmaceutical Group) suspected of reaching and implementing a monopoly agreement based on the report. According to investigations, from 2015 to 2019, Yangtze River Pharmaceutical Group reached agreements with downstream companies such as drug wholesalers and retail pharmacies by signing cooperation agreements, issuing price adjustment letters, and oral notices across the country (excluding Hong Kong, Macao and Taiwan regions). The agreement to fix the resale price of drugs and limit the minimum resale price of drugs, and to ensure the implementation of the agreement through measures such as formulating implementation rules, strengthening evaluation and supervision, penalizing low-price sales dealers, and entrusting intermediary agencies to monitor online drug prices. The above-mentioned actions of Yangtze River Pharmaceutical Group have eliminated and restricted competition, harmed the legitimate rights and interests of consumers and the public interest, and violated Article 14 of the Anti-Monopoly Law, which prohibits operators and counterparties from reaching the following monopoly agreements: (1) Fixed The price for resale of commodities to third parties; (2) The provisions of limiting the minimum price for reselling commodities to third parties. On April 15, 2021, the State Administration of Market Supervision made an administrative penalty decision in accordance with Articles 46 and 49 of the Anti-Monopoly Law, ordering Yangzijiang Pharmaceutical Group to cease illegal activities and imposing its 2018 sales of 25.467 billion. A fine of RMB 3% is 764 million yuan. Drug prices are related to the national economy and people’s livelihood, and involve major issues such as reducing the burden on people seeking medical care and improving people’s livelihood and welfare. The State Administration of Market Supervision will continue to strengthen anti-monopoly law enforcement in the pharmaceutical field, effectively prevent and stop monopolistic behavior, effectively protect fair market competition, and safeguard the legitimate rights and interests of consumers and society. Public interest promotes the healthy development of the socialist market economy.

zhiwo

By zhiwo

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helpmekim
6 months ago

Simcere Pharmaceuticals was fined 100.7 million yuan before. I checked 2% of its sales in 2019. Now it is Yangtze River Pharmaceutical, where the fines are heavier, and pharmaceutical companies have been heavily fined for unfair competition, indicating that this year’s anti-monopoly is not limited to the Internet industry. Think of Yao Jinbo’s previous report on the monopolistic behavior of shell house finding and demanding a heavy fine of 4 billion yuan. This shows that this may happen in the medical, real estate and other industries. In short, the “Anti-Monopoly Law” came to China to do only three things: fair, fair, or TMD fair! Now the prices of common medicines have risen. The reason is that certain APIs are in the hands of one or two pharmaceutical companies, and other pharmaceutical companies have to increase their prices as soon as they increase prices. This fully shows how much monopoly is harmful to the market. Therefore, the fight against monopoly is for the normal operation of the market, but also for the long-term well-being of the people! Ali 4%, Yangtze River Pharmaceutical 3%, Ali made a sample, and the rest will be easy to handle.

heloword
6 months ago

It is strongly recommended that those who are interested in this issue take a look at the news 1+1 program of CCTV News Channel in the evening of 20210415. It is about this incident. Mention a few details that the guests said in the show. Yangtze River Pharmaceutical limited the distributors to “not be lower than this price.” A very characteristic feature of this incident is that Yangtze River Pharmaceutical has an intermediary, which is equivalent to authorizing this intermediary to act as a monopoly. According to the law, this intermediary is not the target of the anti-monopoly law. Yangtze River Pharmaceutical had previously overtaken its suppliers on anti-monopoly issues and received 70 million in compensation. This time I lost ten times the amount I received at the time. Pharmaceutical companies are capital-intensive, innovation-intensive, and patent-intensive industries. They themselves have obtained certain protections. In fact, they don’t need to monopolize to protect their status. By enforcing the anti-monopoly law, consumers can be effectively protected and the prices of raw materials and finished drugs can be drastically reduced. In the areas where the anti-monopoly law has been enforced, industry competition has become more adequate, innovation has become more prosperous, and the inconsistency caused by monopoly has been avoided.

helpyme
6 months ago

The monopoly issue seems to have become a topic that has often been talked about recently, indicating that the rectification of large enterprises has begun. Under the competition of large enterprises, the living environment of many small enterprises is not good. In recent years, the real economy has developed, and few real industries dare to say that they have developed very well. The State Administration of Supervision and various local authorities supervise and punish these enterprises and platforms. It can be seen that the market cannot be completely liberalized. It needs to be within a certain framework and threshold, just as if human freedom breaks through the legal threshold, then This society will no longer be safe. The first thing that monopoly brings is economic problems and public interests. In an environment without competition, entropy increase is inevitable. If the house is not cleaned up, it will become chaotic. There is no motivation for innovation. There is only one dominant company. The negative effects that eventually evolve are only The people will pay the bill. The economic problem is only one aspect. Looking at the situation in South Korea next door, Samsung, Hyundai and other big chaebols will know how terrible this is.

sina156
6 months ago

Manufacturers have increased their prices drastically in recent years, especially those of proprietary Chinese medicines. You can take a look at the proprietary Chinese medicines on the market, which basically increase their prices once a year. Motherwort of a certain gold pharmaceutical company sold from 12 yuan to the current 36, and Xiaoyao pills from 10 yuan to the current 30. It also issued a price adjustment letter to control commercial supply terminals and only supply matching chain terminals. It is called control sales, but behind it is to make consumers bear their high gross profit. There are countless varieties of this kind on the market, such as a dragon’s eye ointment, a positive two-Ding, a certain Ejiao, a certain tobacco and alcohol, etc.

yahoo898
6 months ago

Yangzijiang Pharmaceutical was fined 764 million yuan due to monopoly. Monopoly fines for the pharmaceutical industry frequently appeared. Beijing News (Reporter Zhang Xiulan) The pharmaceutical industry issued another monopoly ticket. On April 15th, the State Administration for Market Regulation released information that Yangzi Pharmaceutical Group was ordered to stop illegal activities and fined 764 million yuan due to acts of eliminating or restricting competition. This is also another monopoly fine issued by the pharmaceutical industry recently. Yangzijiang has been ranked first in the top 100 pharmaceutical industry in China for a long time. The State Administration for Market Regulation’s investigation into Yangzijiang Pharmaceutical Group’s suspected conduct of reaching and implementing a monopoly agreement began in November 2019. According to investigations, from 2015 to 2019, Yangtze River Pharmaceutical Group reached agreements with downstream companies such as drug wholesalers and retail pharmacies by signing cooperation agreements, issuing price adjustment letters, and oral notices across the country (excluding Hong Kong, Macao and Taiwan regions). The agreement to fix the resale price of drugs and limit the minimum resale price of drugs, and to ensure the implementation of the agreement through measures such as formulating implementation rules, strengthening evaluation and supervision, penalizing low-price sales dealers, and entrusting intermediary agencies to monitor online drug prices. The above-mentioned actions of Yangtze River Pharmaceutical Group have eliminated and restricted competition, harmed the legitimate rights and interests of consumers and the public interest, and violated Article 14 of the Anti-Monopoly Law, which prohibits operators and counterparties from reaching the following monopoly agreements: (1) Fixed The price for resale of commodities to third parties; (2) The provisions of limiting the minimum price for reselling commodities to third parties. The State Administration of Market Supervision made administrative penalty decisions in accordance with Articles 46 and 49 of the Anti-Monopoly Law, ordering Yangzijiang Pharmaceutical Group to cease illegal activities and imposing a fine of 3% of its 2018 sales of 25.467 billion yuan. 764 million yuan. The Yangtze River Pharmaceutical Group produces and sells more than 300 types of medicines. The survey shows that its key fixed and price-limited medicines are Lanqin Oral Liquid, Bailemian Capsules, Astragalus Extract, Epalrestat Tablets, Suhuang Cough Relief Capsules, etc., Yangtze River Pharmaceutical Group drugs are sold through hospital channels and retail channels, and different drugs have different sales ratios in hospital channels and retail channels. Yangzijiang Pharmaceutical is a well-known enterprise in the domestic biopharmaceutical industry. The “2019 China Pharmaceutical Industry Top 100 List” released by the China Pharmaceutical Industry Information Center shows that Yangzijiang Pharmaceutical ranks first on the list. This is the sixth consecutive year that Yangzijiang Pharmaceutical has ranked first. Monopoly fines are frequently issued in the pharmaceutical industry, and raw materials have become the hardest hit area. Yangzijiang Pharmaceutical is not the first biopharmaceutical company to receive fines due to monopoly. Earlier this month, Tianyao Co., Ltd. planned to be fined 44,022,600 yuan for suspected monopoly of fluocinolone acetoacetate APIs. The Tianjin Municipal Market Supervision Committee believes that Tianyao has divided the sales market of fluocinolone acetonate raw materials in the form of agreement, and changed and fixed the price of fluocinolone acetoacetate raw materials, eliminating the restriction of competition in the field of fluocinolone acetoacetate raw materials sales, and violated the “Anti-Countermeasures The relevant provisions of the “Monopoly Law” belong to the act of reaching and implementing a monopoly agreement on “fixing or changing commodity prices” and “dividing the sales market or raw material procurement market”. The Tianjin Municipal Market Supervision Commission intends to confiscate the illegal income of Tianyao shares of RMB 8,897,850, and impose a fine of RMB 35,124,700 for 4% of its sales in 2019, with a total fine of RMB 44,022,600. APIs have become the hardest hit area for the monopoly of pharmaceutical companies. The “Annual Report on China’s Anti-Monopoly Law Enforcement (2019)” issued by the State Administration for Market Regulation at the end of 2020 shows that among the cases investigated in 2019, the API industry has 6 cases, and the national market is supervised. The General Administration also puts anti-monopoly enforcement in the field of APIs as the top priority of its work. Among them, there are many well-known companies in the industry that have been punished. In January 2019, the State Administration of Market Supervision issued a fine of over 10 million yuan to Hunan Erkang Pharmaceutical Co., Ltd. due to the price increase of chlorpheniramine. Another company involved in the incident, Henan Jiusee Pharmaceutical Co., Ltd., was fined 1.5573 million yuan. . In January this year, Simcere Pharmaceuticals also received a large fine for abuse of its dominant position in the sales market of China’s Batroxobin concentrate API, and was fined 100.7 million yuan by the State Administration of Market Supervision. According to incomplete statistics from reporters of the Beijing News, since 2016, a total of 15 companies including Tianyao shares have been punished for monopolistic activities of APIs.

leexin
6 months ago

Why do I feel good about Ali? After all, Ali became the first bird, fined more than 10 billion, and the people behind him fined several hundred million. It seems that there is nothing to say. It seems that I have really made up my mind to improve the domestic economic structure and environment, and look forward to the improvement of the business environment. After all, as we all know today, those who do not make money and those who do not make money have almost become a consensus. By monopolizing unequal status, squeeze the living space of small businesses and small households. This phenomenon is almost everywhere and manifests in every aspect. For example, offline landlords increase their rents based on the business status of their stores, and online platforms raise gu that allow businesses to fight each other’s lives. Large merchants use their resource advantages to desperately squeeze the living space of small merchants. Business loans, everyone does not want to invest the money in production and operation to expand production, but investing in real estate speculation can explain the problem. Today, everyone is not surprised, it seems to be a normal thing. But thinking about it is very scary. The capital of the entire society is idling, and the cornerstone of the economy is decayed. I know I’ve watched a big video that compares Hong Kong to the mainland. In fact, this big video is not pretending to be stupid. The essence of Hong Kong’s economic prosperity is to collect tolls, and there is no need for internal circulation at all. Whose tolls can the mainland charge? If the mainland is Hong Kongized, the result will definitely not be the so-called gap between the rich and the poor. . As an e-commerce seller, it is a bit complicated to see Ali’s feelings about being legalized, because our sales of more than 95 are on Taobao. The so-called so-called prosperous and prosperous will lose everything, but as a seller, I also know the terrible monopoly of these big platforms. To be honest, Ali will still consider a bit of business life and death. . But when Ali reached that position, he couldn’t help it. The other two platforms, Brother East, have lots of pits. It’s really just using merchants as tools. But even so, the monopolistic market for these platforms is still very cruel. So this is good. Speaking of monopoly, I think Pin Xixi should be punished even more. Pin Xixi uses its monopoly position to impose fines on merchants freely and unreasonably, and it is unreasonable, rules, and laws that arbitrarily allocate business funds without room for negotiation and communication. . . Is it better to be punished? It is strongly demanded to conduct anti-monopoly investigations on another way of taking advantage of Pixixi’s monopoly position, arbitrarily and unreasonably fines and deductions! Why don’t we work hard to fight a lot? We have the resources, supply chain, and operational capabilities. . Because Pinduoduo many things are disgusting enough. . At Taobao, we are fighting for food in a group of mad dogs. It is difficult, but we can still work hard. But opening a Pinduoduo shop is like kneeling in a cesspit begging for food, and you have to grab it. It’s not easy, and it’s disgusting. Therefore, anti-monopoly cannot only reflect maliciously suppressive competition between platforms, but also against platforms that do not treat merchants as human beings. . I think all Pinduoduo stores should feel the same, right?

greatword
6 months ago

Is this Yangtze River Pharmaceutical Factory the one in Gaogang, Taizhou? I have relatives who work there. When the epidemic broke out in 20 years, he went to the factory to participate in production on the second day of the new year. He originally thought that the pharmaceutical factory was making a lot of money, and he could follow along with bonuses and other things. However, in June 20th, I heard that the production of Yangtze River Pharmaceutical Factory was almost stagnant, and my relatives had nothing to do during working hours, so they would receive a basic salary every month, which was less than 3,000. According to my relatives, the pharmaceutical factory has no R&D capabilities, so it just sells prescription drugs and acts as a middleman to make the difference. The drug sales model is almost like producing a batch of drugs and directly buying a drug dealer. As for what price the drug dealer can resell, Yangtze River Pharmaceutical Factory does not intervene or take a tap. However, the drug dealers mentioned that the price of medicines in Yangtze River is also more expensive. It is said that my relatives said that medicine dealers can get a box in another house on November 12, and it costs 20 in Yangtze River. Therefore, the huge profits of drug dealers in Yangtze River are not very big. It seems that Yangtze River offends the drug dealers a bit. The country is also very disgusted with this kind of unpretentious thing, and now there are two ways to Yangtze River Pharmaceutical Factory, one is nationalization, and the other is listing. If you don’t agree with the negotiation, you will keep hanging, and you will never feel more personally comfortable. I understand that nationalization means that the country thinks that the price difference is better for the country to make money. After all, you have taken so much money privately, which neither promotes pharmaceutical research and development nor promotes the healthy development of the industry; going public is to accept the market’s beatings and let the society spur You are motivated. The fine is the beginning, and it is also a lesson for other companies in Taizhou Pharmaceutical City. It is hoped that Yangzijiang Pharmaceutical Factory will be able to transform according to the requirements of the country. After all, many people in Yangtai and Taizhou are working in it.

loveyou
6 months ago

Beat and beat the tiger, after the tiger beat the hamster.
After checking, Yangtze River Pharmaceutical is a private enterprise, and it has become the industry leader, and won the little-known first “Nobel Prize” in the domestic pharmaceutical industry-the 2016 “Global Outstanding Performance Award”. When you come out, you always have to pay it back!
Everyone said, what do you want to fight with hamsters?

strongman
6 months ago

Home business. Being punished second only to Ali shows that some people have been intolerable and have no meaning to save. Yangtze River is an old pharmaceutical company that has acquired some old Chinese patent medicines and sold them on the market. There is no innovation and no research and development. This year, they have built an earthen temple. Do you want to laugh off people’s teeth? As for the experiment of Chinese patent medicine, the profit should be more, because the gross profit of 30 or 40% is all traditional medicine. In the spirit of innovation, it is a galaxy behind WuXi AppTec next door.

stockin
6 months ago

A joke a few years ago, you got a small cold, some Chinese medicine stores stuffed you with 200 yuan of Chinese medicine reappeared in jokes, you got a small cold, the western medicine store directly filled you with 50 anti-fever medicinal products, and the price of the medicine went up. To those medicines whose prices have more than quadrupled, it is of course possible that their salaries have quadrupled. But that was another oil price joke ten years ago. The international price rose by 1 yuan, and the domestic price rose by 1.5 yuan. The international price rose by 2, and the domestic price rose by 2.2 yuan. Foreign countries have fallen by 2 yuan, and according to the form, domestic prices have fallen by 0.5 yuan. Asking is to follow the form closely, and the price is absolutely normal. Now that there are minor problems when the doctor prescribes a medicine less than 10 yuan, they must be praised by the whole network. Some people understand what causes this magical scene, but they don’t say it. PS: We still have to strengthen supervision. Before the drug reform, some conscience drugs almost went bankrupt. After the drug reform, some of the occupied pharmaceutical factories increased their prices wildly. I still feel that I bought 5 yuan from a small pharmaceutical factory five years ago, but now I can only buy 15 yuan from a large factory. This is really magical. So there is nothing wrong with Western medicine/Chinese medicine, just making excuses.

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