Ukraine’s Antimonopoly committee fines top pharma distributors UAH 4.8B for cartel collusion

The Antimonopoly Committee of Ukraine (AMCU) has fined two of the country’s largest pharmaceutical distributors – BaDM LLC and the Ukrainian-Estonian joint venture Optima-Pharm LTD – a combined UAH 4.8 billion for engaging in cartel practices and violating competition laws. The decision was published on the AMCU’s official website.

The ruling, issued on July 31, follows the conclusion of an investigation launched in June 2024.

According to the AMCU, the companies coordinated their pricing strategies, maintaining identical or nearly identical prices for several widely used medicines over nearly four years – from March 2020 to December 2023. The drugs named in the case include Spasmalgon, Eucazoline Aqua, Bifren, Movinase, and Neuroxon.

The investigation found that BaDM and Optima-Pharm adjusted prices simultaneously or within days of each other, which the regulator interpreted as a refusal to compete on price – a hallmark of cartel behavior.

Combined, the two companies controlled over 85% of Ukraine’s wholesale pharmaceutical market, giving them substantial influence over market conditions. During the period under investigation, their market share grew by 17%, while profits surged: BaDM’s net profit rose 3.5 times, and Optima-Pharm’s increased 11-fold compared to 2019.

BaDM was fined UAH 2.37 billion, while Optima-Pharm faces a penalty of UAH 2.43 billion.

• In 2024, both companies ranked among Ukraine’s 15 largest businesses. Their annual net revenues – UAH 68–69 billion each – exceeded those of major Ukrainian corporations such as ArcelorMittal Kryvyi Rih (UAH 64.6 billion) and Nova Post (UAH 44.8 billion).