￥133 million ($18 million) fine! Chinese drugmaker slammed for selling cheap and honest flu pills

When infections soared in the northern city of Shenyang, Liaoning after opening up, many drugs were sold at sky-high prices. Amid drug shortages, Northeast Pharmaceutical's acetaminophen tablets were sold for only two yuan ($0.30) for 20 capsules. The public called it a miracle drug or a medicine of conscience. However, on December 12, the Liaoning Provincial Market Supervision Administration fined Northeast Pharmaceuticals 133 million RMB for market monopoly. Customers say they do not understand why the company has to be fined.

According to Northeast Pharmaceuticals' financial report, in the first three quarters, the net profit attributable to the parent company was 128 million yuan, while the full-year attributable net profit for 2021 is 99 million yuan. In other words, this penalty will drain this company's whole year revenue.

Many people suspect malicious reporting by peers. Is it because Northeast Pharmaceutical's low-priced drugs have undercut the competitors? With Northeast Pharmaceutical's price, profits have been so low that even pharmacies are reluctant to sell. And just on December 14, Chinese state pharmaceutical company , China Pharmaceutical, signed an agreement with Pfizer, responsible for its import and distribution in the mainland. As a Covid-19 oral drug, this medicine is priced at nearly $3000 ($430) per box.