China’s Drug Antitrust Fines Increasing

Global regulators are increasing their watch on antitrust issues, pricing issues, IP, patent laws, etc. China’s regulators are doing the same and earlier this year issued 2 policy reports – The Fourteenth Five Year Modernization of Market Regulation Plan and the Fourteenth Five Year Pharmaceutical Industry Plan. These reports focus on drug enforcement of high pricing, supply limitations, exclusive dealing, etc. As a result, the State Administration for Market Regulation (SAMR) has issued many fines, primarily to domestic drug manufacturers, for these types of infractions. Similar fines are expected to increase on Western drug companies in China and several months ago, the SAMR fined a local division of a Swiss drug company about $1.5 million dollars for unfair price manipulation.