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.