The European Commission has fined Alchem International Pvt. Ltd. and its subsidiary Alchem International (H.K.) Limited a total of €489,000 for violating EU antitrust laws. The fine stems from Alchem's involvement in a cartel that lasted over 12 years, concerning the pharmaceutical ingredient N-Butylbromide Scopolamine/Hyoscine (SNBB), which is essential for producing the drug Buscopan and its generics.

In October 2023, the Commission had already fined six other companies a total of €13.4 million for their participation in the same cartel. Unlike these companies, Alchem opted not to settle the case, leading to a more extended investigation under the standard cartel procedure. The Commission issued a Statement of Objections to Alchem in June 2024.

The investigation revealed that Alchem coordinated with other cartel members to fix minimum sales prices for SNBB and allocate quotas among themselves. They also exchanged sensitive commercial information, which is a clear violation of competition laws. This case marks the first time the Commission has sanctioned a cartel in the pharmaceutical sector related to an active pharmaceutical ingredient.

The fine imposed on Alchem was determined based on the Commission's 2006 Guidelines on fines, taking into account various factors such as the sales value of SNBB, the nature and duration of the infringement, and its geographic scope. Alchem's lack of cooperation during the investigation meant they did not qualify for any reductions in the fine under the Commission's leniency or settlement policies.

The Commission's actions were initiated following a leniency application from C2 PHARMA in April 2019, which led to further investigations and applications for fine reductions from other cartel participants. The Commission has also established a whistleblower tool to encourage reporting of anticompetitive behavior while ensuring anonymity.

Individuals or companies affected by the cartel can seek damages in national courts, as the Commission's decision serves as binding proof of the illegal behavior. The Antitrust Damages Directive facilitates the process for victims to claim damages, emphasizing the importance of competition in ensuring affordable access to essential medicines.