EU fines Alchem $525K for price-fixing of key active pharmaceutical ingredient

Alchem International, an India-based manufacturer of pharmaceutical ingredients, and its Hong Kong subsidiary have been fined €489,000 (approximately $525,000) by the European Commission for violating antitrust rules related to active pharmaceutical ingredient (API) pricing.

According to the Commission, Alchem participated in a long-running cartel involving N-Butylbromide Scopolamine/Hyoscine (SNBB), a key API used in the production of Buscopan and its generic equivalents. From November 2005 through February 2018, the company worked with competitors to set minimum sales prices, allocate customer quotas, and exchange commercially sensitive information across the European Economic Area.

The European Commission stated that Alchem’s behavior constituted a single and continuous infringement. The company chose not to cooperate with the investigation, unlike other participants that settled in 2023. As a result, Alchem did not receive any fine reductions under the EU’s leniency or settlement programs.

The fine was based on the value of SNBB sales during the infringement period, along with the geographic scope and duration of the violation, according to the announcement.

This case represents the first time the European Commission has penalized a cartel involving an active pharmaceutical ingredient. The investigation was initiated by a 2019 leniency application from C2 PHARMA and was supported by competition authorities in Switzerland and Australia.

The European Commission noted that individuals or companies harmed by the cartel’s behavior may pursue damages through national courts within EU member states.