The European Commission fined pharmaceutical company Alchem €500,000, confirming that the company was part of a cartel for more than 12 years, which had blocked the free trade of a crucial pharmaceutical ingredient.
The cartel involved companies producing the pharmaceutical ingredient N-Butylbromide Scopolamine/Hyoscine (SNBB), used in the production of the abdominal pain relief drug Buscopan and its generic alternatives. Alchem set up minimum sales prices of SNBB to its customers, breaching competition laws.
In total, six companies were part of the cartel, which, according to the Commission’s investigation, lasted from 2005 to 2018. The other five companies involved decided to settle the dispute with the Commission after a 2023 decision slapped a combined fine of 13.4 million euros on them. Alchem did not collaborate with the investigation and did not settle, leading to today’s decision. The company will have to pay 489,000 euros, an amount calculated based on the EU’s guidelines in such cases.
Commission’s Executive Vice-President Teresa Ribera commented on the result, saying that: “our investigation showed that Alchem, the only producer who chose not to settle, illegally coordinated prices and allocated quotas for more than 12 years. Today’s decision underscores the crucial role of competition as the key to unlocking affordable access to essential medicines.”
