Shanghai Pharma(601607) 华夏时报·2025-03-28 12:50Core Viewpoint - The recent administrative penalty against three pharmaceutical companies for price manipulation of Methacholine Chloride Injection reveals underlying collusion and monopolistic practices in the industry, raising concerns about market integrity and consumer rights [1][5][6]. Summary by Sections Price Manipulation and Penalties - Shanghai Xinyi United Pharmaceutical Co., Ltd. and its affiliates were fined a total of 2.23 billion yuan for colluding to raise the price of Methacholine Chloride Injection by 11 to 21 times [1][4]. - The leading company, Xinyi United, received a reduced penalty of 1.65 billion yuan due to its cooperation in providing evidence [1][6]. Market Dynamics and Drug Information - Methacholine Chloride Injection is a commonly used anesthetic drug, included in the national essential drug list and the shortage drug list [2][3]. - Prior to the price manipulation, the prices for this injection ranged from 3.56 to 6.8 yuan per unit, but were inflated to 71.5 yuan during the collusion [2][3]. Collusion Details - The collusion involved communication between the companies to set prices and divide market territories, ensuring stable market shares while excluding competition [4][5]. - The investigation revealed that the companies had agreed to raise prices to match those in the Shandong market, significantly distorting the pricing mechanism [3][4]. Regulatory Response and Future Implications - The case marks the first instance of personal liability for individuals involved in reaching a monopoly agreement under the revised Anti-Monopoly Law [1][6]. - The regulatory environment is tightening, with increased scrutiny and penalties aimed at deterring monopolistic practices in the pharmaceutical sector [6][9]. Broader Industry Context - The incident highlights a trend of monopolistic behavior in the pharmaceutical industry, particularly in the context of limited competition for certain drugs [5][9]. - The upcoming inclusion of Methacholine Chloride Injection in the national centralized procurement program is expected to reduce its price significantly, indicating a shift towards more competitive pricing [8].