Let's Talk About the Sovereign Pharma Monster, AKA "Фармация"
Region's sole government-run pharmacy supplying subsidized medications to underprivileged citizens will be shut down.
Denis Pasler, acting governor of the Sverdlovsk region, recently backed Tatiana Savinova, the regional health minister and deputy governor's proposal to liquidate the AO "Фармация." Savinova spilled the beans during a press conference with journalists.
The pharmaceutical behemoth, also known as GUP "Фармация," owns over a hundred pharmacies in Yekaterinburg and other cities in the region. These outlets will continue operations, according to the Department of Information Policy of the Sverdlovsk region.
The government pharmacy market started monopolizing back in 2016. The pioneer was the "Nizhny Novgorod Oblast Pharmacy." The Antimonopoly Service attempted to challenge this, but the Supreme Court allowed the experiment to proceed. After them, the Kaluga, Arkhangel, Tatarstan, and Chuvash regions followed suit. The Russian government then passed a federal law, effective from July 1, 2024, which formalizes the single supplier of pharmaceuticals for government purchases.
GUP "Фармация" is the only regional pharmacy network dealing with narcotic drugs. The network became unprofitable since 2017. To address this, they decided to overhaul the organization: initially transferring it to the Ministry of Health, and then restructuring it into a state-owned entity.
In 2024, "Фармация" was split: one part was assigned to handle regular drugs, while the other was to keep control of narcotic drugs. The plan was for all to transition to the new organization over the course of three years, including staff and assets.
Consequently, in July 2024, a single pharmaceutical and medical equipment supplier – AO "Фармация" – began operating in Sverdlovsk region. The company planned to start deliveries to hospitals from January 2025, as per the director's statement on our site.ru.
Market participants agreed that the monopolistic companies would assist the Ministry of Health in simplifying administrative procedures, planning deliveries, and reducing expired drugs inventory. However, they expressed doubt that corruption levels would reduce.
Pharmaceutical Tyrant in the Making: The Saga of "Фармация"
Formerly connected with the "Just Russia" party, "Фармация" has been embroiled in political intrigue. Galina Zhukovskaya, the former director of the company, is the mother of Andrey Zhukovsky, a deputy of the Legislative Assembly and a leader of the Earning Russia party. Ilya Lobov, her deputy, was a deputy of the Just Russia party.
The financial losses of "Фармация" escalated after the appointment of Natalia Obukhova as director in 2018. Previously, she led the sales department at the "Rainbow" pharmacy chain.
The legal department of the company believed that Obukhova intended to bankrupt and either liquidate or privatize the company. However, former governor Evgeny Kuivashov dismissed her before she could execute her plans.
In the midst of political turmoil, discussions surrounding the medical-conditions and health-and-wellness sector have arisen, with the Sovereign Pharma Monster, known as "Фармация," being a key player. Despite the plans to liquidate "Фармация" by regional health minister Tatiana Savinova, the pharmacy network continues to operate due to ownership of over a hundred outlets that sell science-related products, particularly medicines. The news of potential liquidation comes after the company's financial struggles, which first became apparent in 2017.
