(Yicai Global) May 29 -- Shares in Grand Pharmaceutical Group plunged as much as 10.9 percent today after the Chinese drugmaker said that one its units has been penalized CNY285 million (USD40.3 million) for abusing its dominant position in the field of epinephrine active pharmaceutical ingredients.

Grand Pharmaceutical Group’s share price [HKG:0512] was trading down 4.9 percent at HKD4.59 (USD0.60) as of 12 noon China time today. Earlier in the day it sank to HKD4.30.

Unit Grand Pharmaceutical China was fined CNY136 million by regulators and ordered to pay back CNY149 million it earned in illicit gains, the Hong Kong-based group said yesterday.

The fine is equal to 15.8 percent of Grand Pharmaceutical Group's net profit in the last fiscal year and to 3.48 percent of revenue and is not expected to have a sustained impact on the group’s operations, it said.

Since 2010, there have only been two companies in China licensed to produce norepinephrine and epinephrine active pharmaceutical ingredients, namely Grand Pharmaceutical China and a subsidiary of Wuhan Healcare Pharmaceuticals, the State Administration of Market Regulation said on its website.

Wuhan Healcare was fined CNY4.1 million (USD580,072) and had CNY30.9 million (USD4.4 million) in unlawful gains confiscated.

Editor: Kim Taylor