24 foreign pharmaceutical manufacturing companies took part in the international procurements in Ukraine through Ukrainian distributors. This is reported by the CF “Patients of Ukraine”, All-Ukrainian Network of PLWH and Anti-Corruption Action Center who today issued the “black list” of such manufacturers.
“Based on our analysis, it was these Ukrainian agent-companies which underlied in corruption schemes in public procurements of medicines. As known, according to the Security Service of Ukraine, prices during the procurements were inflated up to 40%, but the difference fell into private pockets of officials of the Ministry of Health and beneficiaries of such agents. International organizations have destroyed this mechanism of corruption”, said Alexander Ustinova, Board member of the Anti-Corruption Action Center. We ask the big pharmaceutical manufacturers to take part in Ministry of Health tenders directly and not to cooperate with Ukrainian distributors of dubious reputation,” – she added.
Today, CF “Patients of Ukraine” and Anti-Corruption Action Center sent an appeal to all the pharmaceutical companies which have taken part in tenders through agent companies. The Expert Analysis presented in the Analytics of the Anti-Corruption Action Center and Report on pharmaceutical markets research for the period from 2014 – first half of 2016 confirm that these were the local distributors in Ukraine, who served as the main corruption mechanism in the state procurement of medicines and medicinal products.
In particular, the Report of the Anti-Monopoly Committee of Ukraine states that “The Committee is considering a number of cases on the basis of committing by the foreign pharmaceutical companies (or their subsidiaries) and major domestic distributors of medicines violations of law on the protection of economic competition in the form of anticompetitive concerted actions. The Committee proceeded the mentioned cases on its own initiative on the results of the Ukrainian pharmaceutical markets’ research in view of the social importance of these markets, stipulated by a significant importance of public procurements”.
“Today we have sent letters to all pharmaceutical manufacturers and urged them to take part in tenders of the Ministry of Health directly. The key idea of international procurements was to remove excessive “margin” as agents who for years ate almost half a state budget allocated for medicines. We hope that pharmaceutical companies have learned from the previous year, and this year we won’t see distributors with a dubious reputation among their partners”, said Olga Stefanyshyna, Executive director of CF “Patients of Ukraine”.
It should be reminded that the previous year state procurements of medicines and medicinal products were delegated to three international organizations – UNICEF, UNDP and the Crown Agents. Taking into account the effectiveness of cooperation between international organizations and pharmaceutical companies it was managed to save for Ukraine near UAH 790 million. They procured medicines under 12 state programs for the total amount exceeding UAH 2,197 billion. According to the estimations of patients and anticorruption organizations, this year almost 40% of companies which take part in tenders directly are the manufacturers, which is the record number.
“One small step of pharmaceutical companies in the form of direct contracts with international organizations will provide with treatment more patients and stop all the manipulation with prices”, – said Dmytro Sherembey, Head of the Board of All-Ukrainian Network of PLWH.
Regarding the effectiveness of this anticorruption reform, in 2016 the Ministry of Health of Ukraine signed agreements with UNICEF, UNDP and the Crown Agents for the amount about UAH 3,9 billion, thereby delegating them the procurement of medicines and medicinal products for budget money in 2016 for all state programs.
Contact person: Aliona Romanyuk 093 72 10 800