{"id":160899,"date":"2025-07-07T03:00:09","date_gmt":"2025-07-07T01:00:09","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=160899"},"modified":"2025-07-04T12:25:06","modified_gmt":"2025-07-04T10:25:06","slug":"commission-fines-alchem-for-participating-in-a-pharmaceutical-cartel","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/commission-fines-alchem-for-participating-in-a-pharmaceutical-cartel\/","title":{"rendered":"Commission fines Alchem for participating in a pharmaceutical cartel"},"content":{"rendered":"<p style=\"text-align: justify;\">The European Commission has fined Alchem International Pvt. Ltd. and its subsidiary Alchem International (H.K.) Limited (together \u2018<strong>Alchem<\/strong>&#8216;) \u20ac489,000 for breaching EU antitrust rules. The Commission has found that, for more than 12 years, Alchem participated in a cartel concerning an important pharmaceutical ingredient.<\/p>\n<p style=\"text-align: justify;\">In\u00a0October 2023, the Commission adopted a settlement decision and imposed fines totalling \u20ac13,4 million against six companies for their participation in the same cartel. Alchem decided not to settle this cartel case with the Commission, unlike the other participants. As a result, and in line with its usual practice, the investigation against Alchem continued under the standard cartel procedure. The Commission sent a Statement of Objections to Alchem in June 2024.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.cde.ual.es\/wp-content\/uploads\/2021\/11\/20211125PHT18123_original.jpg\" width=\"554\" height=\"369\" \/><\/p>\n<p style=\"text-align: justify;\"><strong>The investigation<\/strong><\/p>\n<p style=\"text-align: justify;\">Alchem is a producer of the pharmaceutical ingredient N-Butylbromide Scopolamine\/Hyoscine (\u2018SNBB&#8217;), an important input material to produce the abdominal antispasmodic drug\u00a0<em>Buscopan\u00a0<\/em>and its generic versions.<\/p>\n<p style=\"text-align: justify;\">The Commission&#8217;s investigation revealed that Alchem\u00a0<strong>coordinated and agreed to fix the minimum sales price of SNBB to customers<\/strong>\u00a0(i.e., distributors and generic drug manufacturers)\u00a0<strong>and to allocate quotas<\/strong>. In addition, Alchem exchanged commercially sensitive information.<\/p>\n<p style=\"text-align: justify;\">The Commission&#8217;s investigation revealed that Alchem participated in a\u00a0<strong>single and continuous infringement<\/strong>\u00a0in the European Economic Area (\u2018EEA&#8217;), spanning\u00a0<strong>from 1 November 2005 to 12 February 2018<\/strong>.<\/p>\n<p style=\"text-align: justify;\">This is the first cartel that the Commission sanctioned in the pharmaceutical sector and in relation to an active pharmaceutical ingredient. The Commission cooperated and coordinated certain investigative activities with the Swiss and Australian competition authorities.<\/p>\n<p style=\"text-align: justify;\"><strong>Fine<\/strong><\/p>\n<p style=\"text-align: justify;\">The Commission imposed a fine of \u20ac489,000 on Alchem.<\/p>\n<p style=\"text-align: justify;\">The fine was set on the basis of the Commission&#8217;s 2006\u00a0Guidelines on fines.<\/p>\n<p style=\"text-align: justify;\">In setting the fine, the Commission considered various elements, including the value of SNBB sales relating to the infringement, the nature of the infringement and its multifaceted features, its geographic scope and its duration.<\/p>\n<p style=\"text-align: justify;\">Alchem chose not to cooperate with the Commission during the investigation and therefore did not benefit from any reduction under the Commission&#8217;s\u00a02006 Leniency Notice\u00a0or its\u00a02008 Settlement Notice.<\/p>\n<p style=\"text-align: justify;\"><strong>Background<\/strong><\/p>\n<p style=\"text-align: justify;\">Article 101 of the TFEU\u00a0and\u00a0Article 53\u00a0of the EEA Agreement\u00a0prohibit agreements and other restrictive business practices that may affect trade and prevent or restrict competition within the Single Market.<\/p>\n<p style=\"text-align: justify;\">The Commission&#8217;s investigation was triggered by an application under the Commission&#8217;s\u00a02006 Leniency Notice\u00a0submitted by C2 PHARMA in April 2019. This was followed, after the inspections in September 2019, by successive applications for reduction of fines by Transo-Pharm and Linnea.<\/p>\n<p style=\"text-align: justify;\">More information on this case will be available under the case number AT.40636 in the\u00a0public case register\u00a0on the Commission&#8217;s\u00a0competition website once confidentiality issues have been resolved.<\/p>\n<p style=\"text-align: justify;\"><strong>Whistleblower tool<\/strong><\/p>\n<p style=\"text-align: justify;\">The Commission has set up a tool to make it easier for individuals or companies to alert it about anticompetitive behaviour while maintaining their anonymity. This tool protects whistleblowers&#8217; anonymity through a specifically-designed encrypted messaging system that allows two way communications.<\/p>\n<p style=\"text-align: justify;\"><strong>Action for damages<\/strong><\/p>\n<p style=\"text-align: justify;\">Any person or company affected by the anti-competitive behaviour described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the Court of Justice of the European Union and\u00a0Council Regulation 1\/2003\u00a0 both confirm that in cases before national courts, a Commission decision constitutes binding proof that the behaviour took place and was illegal. Even though the Commission has fined the cartel participants concerned, damages may be awarded without being reduced on account of the Commission fine.<\/p>\n<p style=\"text-align: justify;\">The\u00a0Antitrust Damages Directive, makes it\u00a0easier for victims of anticompetitive practices to obtain damages.<\/p>\n<p><strong>More information: <a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/es\/ip_25_1721\">European Commission<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European Commission has fined Alchem International Pvt. Ltd. and its subsidiary Alchem International (H.K.) Limited (together \u2018Alchem&#8216;) \u20ac489,000 for breaching EU antitrust rules. The Commission has found that, for more than 12 years, Alchem participated in a cartel concerning an important pharmaceutical ingredient. In\u00a0October 2023, the Commission adopted a settlement decision and imposed fines [&hellip;]<\/p>\n","protected":false},"author":101012,"featured_media":87883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[346,13007],"tags":[15275,1488,368,5305,15277,405,2788,15276],"class_list":{"0":"post-160899","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu-news","8":"category-fine","9":"tag-alchem","10":"tag-european-commission","11":"tag-european-union","12":"tag-fine","13":"tag-ingredient","14":"tag-investigation","15":"tag-news","16":"tag-pharmaceutical-cartel","17":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commission fines Alchem for participating in a pharmaceutical cartel | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cde.ual.es\/?p=160902\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commission fines Alchem for participating in a pharmaceutical cartel | CDE Almer\u00eda - Centro de Documentaci\u00f3n Europea - Universidad de Almer\u00eda\" \/>\n<meta property=\"og:description\" content=\"The European Commission has fined Alchem International Pvt. Ltd. and its subsidiary Alchem International (H.K.) Limited (together \u2018Alchem&#8216;) \u20ac489,000 for breaching EU antitrust rules. The Commission has found that, for more than 12 years, Alchem participated in a cartel concerning an important pharmaceutical ingredient. 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