Core Viewpoint - Four pharmaceutical companies, including Tianjin Pharmaceutical Co., Ltd. (Tianjin Pharma), Zhejiang Xianju Pharmaceutical Co., Ltd. (Xianju Pharma), Jiangsu Lianhuan Pharmaceutical Co., Ltd. (Lianhuan Pharma), and Xi'an Guokang Ruijin Pharmaceutical Co., Ltd., were fined a total of 362 million yuan for price-fixing of dexamethasone raw materials, with Tianjin Pharma being penalized for the fourth time for similar monopolistic behavior [1][2][4]. Group 1: Companies Involved - Tianjin Pharma, Xianju Pharma, Lianhuan Pharma, and Xi'an Guokang Ruijin Pharma were involved in a price-fixing scheme for dexamethasone, leading to a significant increase in prices from 8,000 yuan/kg to 13,000 yuan/kg between February 2022 and March 2024 [2][4]. - Tianjin Pharma has a history of monopolistic practices, having been penalized multiple times since 2021 for various violations of antitrust laws [4][5]. - Lianhuan Pharma's fine represents 72.53% of its net profit, significantly impacting its financial performance [6][8]. Group 2: Regulatory Actions - The Tianjin Municipal Market Supervision Administration imposed fines based on the companies' previous year's sales, totaling 355 million yuan, along with confiscation of illegal gains [2][7]. - The regulatory body emphasized the importance of maintaining fair competition in the pharmaceutical sector and indicated a commitment to stricter enforcement of antitrust laws [2][4]. - Lianhuan Pharma has submitted a hearing request to reduce its penalties, but the regulatory authority rejected its arguments, affirming the validity of the evidence against the company [7]. Group 3: Financial Impact - Lianhuan Pharma reported revenues of 2.174 billion yuan and 2.160 billion yuan for 2023 and 2024, respectively, with net profits declining by 4.5% and 37.66% [6][8]. - The fine imposed on Lianhuan Pharma will reduce its net profit for 2025 by approximately 61.04 million yuan [8]. - Tianjin Pharma's market influence is significant, with a strong presence in the domestic market for steroid hormone raw materials [5].

Core Viewpoint - Tianjin Pharmaceutical Industry (津药药业) has repeatedly violated antitrust laws, resulting in significant administrative penalties totaling 362 million yuan for price-fixing agreements with other companies in the industry [1][2][10]. Summary by Relevant Sections Antitrust Violations and Penalties - On June 13, the State Administration for Market Regulation announced penalties against Tianjin Pharmaceutical and three other companies for engaging in price-fixing agreements, with a total fine of 362 million yuan [1]. - The company has been penalized a total of 171 million yuan over four antitrust violations in the past four years [2][10]. Price Increases - On February 21, 2022, Tianjin Pharmaceutical raised the price of dexamethasone phosphate raw materials from 9,000 yuan per kilogram to 13,800 yuan per kilogram, an increase of over 53% [4][5]. Management Accountability - Liu Xin, the general manager of Tianjin Pharmaceutical, was fined 600,000 yuan for his role in the antitrust violations [5][6]. - Following the penalties, Liu Xin was no longer listed among the company's executives after a board reshuffle in September 2023 [1][6]. Previous Violations - Since April 2021, Tianjin Pharmaceutical has faced three additional penalties for violating antitrust laws, indicating a pattern of non-compliance [1][7].