Take a closer look at Medtronic's penalty for pulling out the profiteering industry chain behind medical devices

China issued the first medical device price monopoly case ticket. On December 7, the National Development and Reform Commission (NDRC) legally agreed with Medtronic (Shanghai) Management Co., Ltd. (hereinafter referred to as "Medtronic") and its counterparts to implement a monopoly agreement on the price of medical devices in the fields of cardiovascular, reductive therapy and diabetes. Administrative punishment was imposed and the fine was 118.5 million yuan. The incident brought the medical device market profits to the public again. Taking the imported stent as an example, the reporter found that the ex-factory price was only about 1,000 yuan, and the price of the patient's use link soared to about 30,000 yuan. Aside from the business model of increasing the price of traditional agents, medical device manufacturers and dealers collude to promote price monopoly as the biggest black hand behind the scenes.

Yesterday, the company was fined for entering the Chinese market in 1996. It provided products including pacemakers, Endeavor stents, and a pacemaker production line and logistics center in Shanghai. The company sells medical device products in the Chinese market through resale, and the counterparts include platform vendors and first-tier distributors. In this incident, it was found that, at least since 2014, Medtronic reached a monopoly agreement with its counterparts through distribution agreements, email notifications, etc., limiting the resale price, bid price and hospitalization of relevant medical device products. The lowest selling price, and through the formulation of the product price list of various distribution links, internal assessment, cancellation of dealers low-priced winning products and other measures, the implementation of price monopoly agreements. In addition, measures to vertically limit sales targets and sales areas and restrict the distribution of competitive brand products are also adopted to further strengthen the implementation effect of the vertical price monopoly agreement.

Take a closer look at Medtronic's penalty for pulling out the profiteering industry chain behind medical devices

An email from inside Medtronic showed that “there is a type I diabetes patient who is hospitalized in a children's hospital in a certain city. After the recommendation of the director, I want to buy a 712 insulin pump. I am asking for an inquiry. I hope that colleagues can protect the price.” The general content of this email is that all dealers who are asked to be asked are not allowed to cut prices. According to Wu Dongmei, deputy director of the Price Supervision, Inspection and Anti-Monopoly Bureau of the National Development and Reform Commission, there are more internal mails. "We extracted a lot of mail from his server. There are more than 30,000 emails on his server. We have compiled a total of 105 relevant evidence to prove the illegal mail."

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