In China, the pharmaceutical industry is often a prime target of antitrust scrutiny. In May 2023, the Supreme People’s Court of China (SPC) handed down the final verdict in Yangtze River Pharmaceutical Group v. HIPI Pharma Tech, the country’s first antitrust litigation in the active pharmaceutical ingredient (API) sector. The landmark judicial decision – which entirely overturned the lower court’s verdict – involved substantial economic analysis and provides much-needed constructive guidance for future antitrust litigation in China’s pharmaceutical industry.

In a recent article for Law360, Brattle Principal Dr. Vanessa Yanhua Zhang, Academic Advisor Dr. Jiong John Gong, and Consultant Rita Xiaoping Li provide an overview of the case and the SPC’s decision, which represents a milestone in China’s judiciary. The SPC’s decision features solid evidence and rigorous analysis, balances intellectual property rights protection with antitrust regulation, and cautiously addresses the excessive pricing allegations. The authors discuss how the decision also provides critical and valuable guidance for business practices in innovative sectors, especially for multi-national enterprises holding patents and operating in China.

The full article, “A Closer Look At China’s Landmark Pharma Antitrust Ruling,” can be found below.

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