12.43 million! The monopoly drug company disclosed by the money newspaper was severely punished
The State Administration of Markets has finely counted three cases of drug companies involved in the case. The spokesman responded that the newspaper said that it will severely crack down on monopoly.
Hunan Erkang, who is involved in the case, is trying to acquire a stake of no less than 51% in Henan Jiuxian.
Our reporter Zhan Lihua
The newspaper reported on August 7, 2018 that the newspaper disclosed the exclusive situation of the chlorpheniramine.
The Qianjiang Evening News continued to pay attention to and follow up on the monopolistic incidents of chlorpheniramine bulk drugs for more than half a year. On the afternoon of January 2, the official website of the State Administration of Markets issued a message, severely punishing two pharmaceutical companies that abused market dominance, Henan Jiujiu Pharmaceutical Co., Ltd. (hereinafter referred to as Henan Jiujiang) and Hunan Erkang Pharmaceutical Management Co., Ltd. (below) Referred to as Kangkang Medicine, due to the monopoly of chlorpheniramine bulk drugs, a total of 12.431 million yuan was fined, and the two companies involved in the case were ordered to stop the illegal activities.
Henan Jiu potential is the largest manufacturer of chlorpheniramine bulk drugs in China. Erkang Medicine has obtained the only import agent qualification of chlorpheniramine API since 2018. How do the two companies cooperate with each other and monopolize the market, leading to chlorpheniramine raw materials? The supply of medicine is tight and the price is skyrocketing?
After being banned by the State Administration of Markets and imposed a heavy penalty, have the two companies involved changed?
General Administration of Markets:
Counting three sins, severe punishment of 12.43 million yuan
The State Administration of Markets has counted three abuses of market dominance in the two drug companies involved:
Beginning in February 2018, under the leadership of Erkang Medicine, the two companies involved in the case worked closely and cooperated with each other to implement the abuse of market dominance.
1. Selling chlorpheniramine bulk drugs to downstream operators at unfairly high prices;
2. Tying relevant pharmaceutical excipients when selling chlorpheniramine bulk drugs to downstream operators;
Third, on the grounds of “no goods”, refuse to supply chlorpheniramine bulk drugs to downstream operators, or propose to pay high margin, repurchase finished drug sales, increase the price of finished drugs, and divide into conditions unacceptable to downstream operators. Refusal to supply chlorpheniramine bulk drugs.
The above-mentioned acts of the enterprises involved in the case violated the relevant provisions of the Anti-Monopoly Law of the People's Republic of China. The General Administration of Market Supervision made administrative penalties according to law, ordered the two enterprises involved in the case to stop the illegal activities, and confiscated the illegal income of Erkan Pharmaceutical for 2,349,700 yuan, and the fine of 8% for the previous year's sales was 8,749,400 yuan; The fine of 4% of annual sales was 1,557,300 yuan. The two companies involved in the case were fined 12,431,400 yuan.
As an API, chlorpheniramine is widely used in the production of more than 2,000 cold and allergic pharmaceutical preparations, including rheumatoid tablets, vitamin C Yinqiao tablets and other commonly used drugs. Previously, this newspaper has continuously tracked and reported the skyrocketing price of chlorpheniramine bulk drug, which has aroused widespread concern in society. The General Administration of Market Supervision said that the behavior of the two companies involved in the abuse of market dominance was serious and harmful. One is to boost the price of chlorpheniramine bulk drugs. This led to a tight supply of chlorpheniramine bulk drugs and rising prices. Second, it seriously undermines fair competition in the market. The behavior of the company involved in the case harms the interests of the downstream operators. Third, the social impact is bad. The behavior of the company involved in the case led to a shortage of chlorpheniramine bulk drug supply and a sharp increase in prices. Some downstream manufacturers reduced production and stopped production, which harmed the interests of the majority of patients and produced a bad social impact.
After the official website of the State Administration of Markets released the news, the reporter of Qianjiang Evening News immediately contacted the spokesperson of the General Administration of Market Supervision. The other party said that the abuse of market dominance by the enterprises involved in the case has been specifically stated in the official release. At present, China's monopoly behaviors in the field of APIs are frequent, leading to price increases or shortages of downstream drugs. The General Administration of Market Supervision will continue to strengthen anti-monopoly law enforcement in the field of APIs, severely crack down on monopoly behaviors such as monopoly price increases, adhere to speedy and heavy handling, maintain fair competition in the API market, and protect the legitimate rights and interests of relevant operators and patients.
Trying to acquire shares in Henan Jiu potential
The only news on the day of the official supervision of the General Administration of Market Supervision was that “the chlorphenone raw material drug company was fined 12.43 million yuan for monopoly”, which shows the degree of importance. So, what is the performance of the two companies involved in the case? After the release of the punishment news, the reporter repeatedly refreshed Henan Jiu potential and Hunan Erkang Pharmaceutical Co., Ltd. (Erkang Pharmaceutical Parent Company, hereinafter referred to as Hunan Erkang) official website, and did not see any news about the punishment.
The latest development of Henan Jiu potential official website is still an urgent notice on November 9, 2018, which stated that a considerable part of the market has counterfeited and applied the company's chlorpheniramine bulk drug.
The latest news from Hunan Official Website is a “good news” more than half a month ago, about the company won the “Top 100 Hunan Enterprises” news.
However, Hunan Erkang is a listed company, and its “Announcement on the receipt of the “Administrative Punishment Notice” by the subsidiary” has been released, indicating that Hunan Erkang Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Hunan Erkang, has been on December 26, 2018. Received the “Notice of Administrative Punishment” from the State Administration of Market Supervision.
Hunan Kangkang said that after the incident, the parent company has ordered Erkang Medicine to immediately organize rectification as required, and take the precautions to prevent the occurrence of illegal and illegal activities in the process of pharmaceutical circulation and to operate law-abiding.
At the same time, this announcement also revealed a previously unnoticed news: Hunan Erkang intends to acquire the not less than 51% of the shares of Henan Jiutian Pharmaceutical Co., Ltd., a pharmaceutical raw material manufacturer.
If the acquisition is completed, it means that Hunan Erkang will have the actual control of Henan Jiu potential, the largest manufacturer of chlorpheniramine bulk drug in China, and actually has a dominant market position.
The announcement of Hunan Erkang was released on December 28, 2018. Since its release, its stock has fallen for three consecutive trading days.
Henan Jiu potential:
To get the goods, look for Elcon
Before the announcement of the punishment notice of the General Administration of Market Supervision, some pharmaceutical companies purchased chlorpheniramine bulk drugs from Henan Jiu potential. The price of the first time was 800 yuan/kg, but the supply was not much. “(2018) After the purchase in September, I was notified that I had to purchase it from Erkang Medicine. The price also rose to 1980 yuan/kg. We have not received the goods after the punishment news came out.” A drug company official privately The Qianjiang Evening News reporter spit out, “It’s still too early for them to close their hands, otherwise the penalty is even heavier.”
In fact, during the period of repeated iterations, after the Qianjiang Evening News continued to follow up and reported that the price of chlorpheniramine was soaring, the chlorpheniramine drug was immediately named by the General Administration of Market Supervision, indicating that it would conduct an investigation. The person in charge of the preparation company told the reporter privately that he had received a notice from the sales staff of Henan Jiuchang: “The other party took the initiative to contact us and said that the price actually only doubled. After that, the buyer still directly finds the manufacturer and does not pass the intermediary company (Erkang Pharmaceutical) )).”
After the punishment, is the situation indeed as the company involved in the notice of the General Administration of Markets has “corrected the illegal activities in time and resumed the normal supply of chlorpheniramine bulk drugs”?
On the afternoon of the 3rd, the reporter of Qianjiang Evening News dialed the telephone number of the raw materials department of Henan Jiu potential, so the following dialogue was held.
Money newspaper: “Do you know the punishment of the State Administration of Markets?”
Nine potentials: “What punishment? Not clear.”
Money newspaper: “So now the production and supply of chlorpheniramine bulk drugs are normal?”
Nine potentials: “No.”
Money newspaper: “Does the company not say (2018) to resume production before the end of September?”
Nine potentials: “Oh, this is an environmental issue (problem)…”
Money newspaper: “Is it now looking for you or looking for Elcon?”
Nine potentials: “We have not sold for a long time, you are looking for Elcon.”
Money newspaper: “Can supply (quantity) be guaranteed?”
Nine potentials: “We are now producing intermittently.”
The other party was irritated by the constant question and threw the next sentence: “I will tell you, you get the goods to find Elkang, the rest I don't know.”
Then the phone was hung up.
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