(Yicai) June 21 -- Pharmaceutical companies received more than four-fifths of China's anti-monopoly fines last year as regulators stepped up efforts to stop unfair market behaviors in medicine.

Some CNY1.8 billion (USD247.9 million) of the total tally of fines in 27 monopoly cases were given to pharmaceutical companies, up from just CNY43.7 million (USD6 million) in 2022, according to a report from the State Administration for Market Regulation.

Last year, the SAMR concluded three big cases with fines exceeding CNY100 million (USD13.8 million) each. One of them involved SPH No.1 Biochemical & Pharmaceutical and three other firms that got the biggest fine of CNY1.2 billion in China's history of anti-monopoly regulation in pharma.

The SAMR gave insights into the SPH case. Since December 2017, the four companies started exploiting their dominant market positions to sell Polymyxin B sulfate, an injectable medicine used to treat infections with multidrug-resistant gram-negative bacteria, at a higher price than comparative products from foreign vendors by pushing up the prices of raw materials via private transactions.

The frequent occurrence of monopoly cases regarding medicine ingredients is related to the highly-concentrated structure of the market, Zhou Wei, an associate professor at the School of Law, Wuhan University, said to Yicai. Judging from past cases, these supply chains tend to be controlled by just one or a handful of companies, resulting in market control, he added.

The medicine ingredients market features a long investment cycle and high risks so market players that struggle to make a profit are tempted to resort to illegal means, Zhou said, adding that it is hard to completely eliminate opportunistic mindsets despite law enforcement.

Regulators are sharpening their tools. Late last month, the SAMR released a document to ask for public suggestions on key measures to optimize the business environment, particularly mentioning studying and formulating anti-trust guidelines in pharmaceuticals.

Editors: Dou Shicong, Emmi Laine