Linnea SA

Alchem International and its Hong Kong subsidiary have been fined $576,000 (489,000 euros) by EU antitrust regulators for their involvement in a 12-year pharmaceutical cartel, according to a statement issued on July 4, 2025. The European Commission previously fined companies, including Alkaloids of Australia, Boehringer, and Linnea, a total of 13.4 million euros in 2023 for price-fixing the key ingredient used in Buscopan and its generic versions. While other participants admitted their role in exchange for reduced fines, Alchem was the only producer that refused to settle and faced a separate penalty. EU Antitrust Chief Teresa Ribera stated, “Our investigation revealed that Alchem illegally coordinated prices and allocated quotas for over a decade.” This cartel activity manipulated the pricing of a critical pharmaceutical ingredient, impacting market competition and consumer costs. The investigation highlights the growing vigilance of EU regulators in addressing anti-competitive practices in the pharmaceutical industry.

The European Commission has found Alchem guilty of participating in a drug ingredient “cartel” for more than a decade after the drugmaker previously chose not to settle in an investigation. The agency fined Alchem €489,000 ($575,000) after finding that the company had illegally fixed the price of an API, known as N-butylbromide scopolamine/hyoscine (SNBB), used in the production of Buscopan, a drug used to treat stomach cramps. The EC found that the company had “illegally coordinated prices” and “allocated quotas” for more than 12 years, according to a Friday release . “Today’s decision marks the end of our investigation into the SNBB cartel,” said Teresa Ribera, EVP for Clean, Just and Competitive Transition at the EC. In a first, the EC in October 2023 fined several companies — Alkaloids of Australia, Alkaloids Corporation, Boehringer Ingelheim, Linnea and Transo-Pharm — a total fine of $13.4 million for being involved in a “cartel” to illegally fix the price of SNBB. At that time, New Delhi-based Alchem was the only company that chose not to cooperate or settle with the EC, so the agency had to continue its investigation . The inquiry was initially triggered by a notice to the EC in 2019 by C2 Pharma. It was not fined because it warned the agency of the illegal operations.

Brussels: Drugmaker Alchem International and its Hong Kong subsidiary were fined a total of 489,000 euros ($576,000) for taking part in a pharmaceutical cartel , EU antitrust regulators said on Friday. The European Commission had imposed a total fine of 13.4 million euros on Alkaloids of Australia, Alkaloids Corp, Boehringer, Linnea and Transo-Pharm in 2023 for fixing the minimum price of an ingredient to produce the abdominal antispasmodic drug Buscopan and its generic versions. The companies admitted taking part in the cartel in exchange for reduced fines but Alchem did not settle. "Our investigation showed that Alchem, the only producer who chose not to settle, illegally coordinated prices and allocated quotas for more than 12 years," EU antitrust chief Teresa Ribera said in a statement. ($1 = 0.8490 euros) (Reporting by Foo Yun Chee)