Watchdog accuses Qld pharmaceutical provider of price fixing, rigging bids

An Australian company that supplies the ingredient used in upset stomach medication has been accused of price fixing and cartel conduct.

An Australian medicinal supplier which provides the ingredient used in medications to treat upset stomachs has been hit with allegations of cartel conduct, including price fixing and supply restrictions.

Australia’s consumer watchdog charged Alkaloids of Australia Pty Ltd and its former export manager, Christopher Kenneth Joyce, with 33 criminal cartel offences.

It follows a lengthy investigation by the Australian Competition and Consumer Commission (ACCC) into the offences, which extend over more than 10 years.

Alkaloids of Australia, based in NSW and Queensland, produces and supplies the pharmaceutical ingredient SNBB (scopolamine N-butylbromide), which is used in medicines to relieve stomach pains and bowel cramps.

SNBB is manufactured from the native Duboisia plant, which are grown in and around Kingaroy in Queensland.

ACCC Chair Rod Sims said illegal cartel conduct increases the profits of members by encouraging them to work together instead of competing. Picture: NCA NewsWire / Gary Ramage

The ACCC alleges the company and overseas suppliers of SNBB made arrangements to fix prices, restrict supply, allocate customers and geographical markets and rig bids for the supply of the ingredient to international manufacturers of other generic antispasmodic medications.

It is alleged the offences began in July 2009 – when criminal cartel laws came into force in Australia.

The company’s export manager, Joyce, could face up to 10 years’ jail and up to $420,000 in fines.

The Commonwealth Director of Public Prosecutions (DPP) will handle the court case, which is listed in Sydney’s Downing Centre Local Court on January 19 next year.

ACCC Chair Rod Sims said cartel conduct was a serious offence.

“The specific purpose of most cartels is to increase the profits of the cartel members by agreeing to act together instead of competing with each other,” Mr Sims said.

Originally published as Watchdog accuses Qld pharmaceutical provider of price fixing, rigging bids