In the 2nd episode of the series "Monopolists" "Expensive Medicine" the interrelationship of large pharmacy chains, owners and influence structures, competition and influence on the final prices of medicines in pharmacies are explored.
Medicine prices in Latvia are significantly higher than in neighboring countries, for example, publicly available information shows that 20 tablets of Paracetamol produced in Latvia cost 5.47 euros. In Poland, the same paracetamol 50 tablets costs 7.40 zlotys or 1.70 euros.
The reason for this situation is the lack of competition. The 2022 reports show that, for example, the total turnover of Mēness Aptiekas, Latvijas Aptiekas and Saules Aptiekas networks is 253 million euros, or more than 60% of the total drug turnover in the country.
These three companies have related owners. Mēness Aptiekas is controlled by the company RePharm Group, which, taking over the Olainfarm factory, also acquired the chain of Latvian pharmacies it owns. Pharmaceutical business veteran Guntis Belēvičs, whose family owns Saules Aptieka, has become the real beneficiary of Latvian Pharmacy on the basis of a power of attorney.
The Competition Council has also assessed such a monopoly of one company chain as abnormal.
What Latvia can do and whether anything is being done to reduce the influence of the monopoly of pharmacy chains, and what interests stand behind these pharmacy chains - this is analyzed in the second episode of the series.
The premiere of the series took place on June 3, 2024 on the ReTV channel.
In the 1st episode of the series "Exporters", the unflattering activities of the Russian subsidiary "Olainfarm RUS" of the Latvian pharmaceutical industry company AS "Olainfarm" in the aggressor country, including supporting "charity" organizations operating in the occupied territories of Ukraine, related to the Russian criminal regime.
According to the data published by the company itself to the Russian financial services, which were found by the portal Namelo.lv, the profit of "Olainfarm" RUS has almost tripled in the past year, increasing by 272% and exceeding 500 thousand euros (55 million rubles). The turnover of the company has also grown. It has reached 771 million rubles or less than 8 million euros.
The financial indicators of the Russian subsidiary of AS "Olainfarm" "Olainfarm RUS" in general show a rapid growth since the Russian invasion of Ukraine - they also grew in 2022. Then the revenue increased three times and reached 6.7 million euros, and the profit – 140,000 euros.
The representatives of Olainfarm have told a completely opposite story to the Minister of Health of Latvia, Hosam Abu Meri. The minister states that they told him that the trade in medicines in Russia is gradually being reduced and will be completely stopped in the next two years. “And they showed me, and they're ready to go public and say that they've reduced their exports very significantly since the war. And they will continue to stop completely in a few years," says the minister in an interview with Nemelo.lv.
The portal also found out that the company "Olainfarm RUS" started cooperation with the Russian charity organization "Children - Butterflies" in 2023. The head of this public organization, Alona Kuratova, says in public interviews that she received a grant from the President of the country, Vladimir Putin, to carry out activities in the territories occupied by Russia in Ukraine. Olainfarm's cooperation with this organization was evidenced by an entry on the website Olainfarm.ru. It is explained there that Olainfarm helps to collect donations for this organization using a special drug marketing system Doctor's Academy. This educational program was created by the company Olainfarm together with the Association of Young Medical Specialists of Russia.
The company has previously faced public criticism for trading with Russia during the war. After a series of publications on the jauns.lv portal, the homepage of the company "Olaifarm RUS" has been unavailable for more than a month.
The journalist Ansis Pūpols, together with his team from Nemelo.lv, has created more than 20 documentaries, researching and revealing the behind-the-scenes of both the pharmaceutical and cigarette business, studied the withdrawal of the Russian army from Latvia in the 1990s, revealed the dark side of the activities of the former president of the Bank of Latvia Ilmars Rimsevics, examined " behind the scenes of green activists' business, etc.