Tianjin recently imposed a total fine of 362 million yuan ($50.4 million) on four companies and an individual for colluding to inflate drug prices and harm public interests, according to a report by China Central Television on Friday.

The Tianjin Municipal Market Regulation Bureau penalized the organizer, surnamed Guo, along with Tianjin Jiuyao Pharmaceutical Co, Zhejiang Xianju Pharmaceutical Co, Jiangsu Lianhuan Pharmaceutical Co, and Xi'an Guokangruijin Pharmaceutical Co, for forming and executing a price monopoly agreement, said the report.

The investigation, initiated by the Tianjin Municipal Market Regulation Bureau, began in April 2024.

Findings revealed that since November 2021, Guo had communicated with representatives from the four companies through various means, including meetings and visits, to discuss raising the price of dexamethasone sodium phosphate raw materials.

They agreed verbally to stop competing on prices and collectively raise prices. Following this agreement, the four companies ceased external supply, resulting in market shortages and price hikes as planned.

From February 2022 to March 2024, the four companies increased the sales price of dexamethasone sodium phosphate raw materials from 8,000 yuan per kilogram to 13,000 yuan per kilogram, excluding and restricting market competition.

This led to price hikes in dexamethasone sodium phosphate raw materials and related formulations, harming the legitimate interests of consumers and disrupting market order, according to CCTV.

In this case, Guo was fined 5 million yuan, marking the highest penalty imposed on an individual since implementing the "personal responsibility" clause for monopoly agreements in the anti-monopoly law 2022.

Four companies were fined a total of 355 million yuan, which includes confiscation of illegal gains and penalties equal to 8 percent of their previous year's sales. And four individuals responsible for the monopoly agreements were each fined 600,000 yuan.