Unnecessary medicines at inflated prices are the secret of the success of a company that sells its goods to the state for billions of hryvnias

In just 2 war years, the state bought medicines worth 32 billion hryvnia from the largest pharmaceutical companies in Ukraine. And there is an opinion that victories in these tenders were often achieved through the collusion of officials with businessmen. For example, one of the wartime sales leaders was M.T.K. Medical Center LLC. according to the analytical service YouControl received UAH 3.28 billion.

What is known about the pharmaceutical company "Medical Center M.T.K."

LLC "Medical Center M.T.K." is part of the Yuria-Pharm group of pharmaceutical companies consisting of 19 companies. In this case, two companies are of primary importance:

— Yuria-Pharm LLC, engaged in the production of medicines; — LLC “Medical Center M.T.K.”, selling medicines.

Yuria-Pharm proudly announces that it is in the TOP 5 pharmaceutical companies in Ukraine, which the business media agrees with. Producing 323 million units of medicines annually, of which 33 million in Italy, M.T.K. 25-30% of its production is exported, the company is expanding its capacity, for example, through the purchase of a pharmaceutical company in Uzbekistan. In Ukraine, Yuria-Pharm controls 3.3% of the drug market.

However, even without market shares, it is clear that the companies are doing well - for example, at the end of 2023, Yuria-Pharm LLC earned UAH 4.8 billion, which is even more than in pre-war 2021 (4, 56 billion UAH). LLC "Medical Center M.T.K." received UAH 4.9 billion and UAH 4 billion in 2023 and 2021, respectively.

Note that with a total income of UAH 8.2 billion for 2022-2023, LLC “Medical Center M.T.K.” earned almost 3.3 billion UAH from state tenders, thereby seriously improving the company’s financial performance. It is curious that only from the state “M.T.K.” received about 8 billion UAH.

Medicines are not needed, but they are purchased from M.T.K. Medical Center.

In September 2023, in the city of Pryluky, a local court ordered the police to register criminal proceedings based on an allegation of a crime. So, in the spring of 2023, M.T.K. Medical Center LLC entered into an agreement with the central city hospital of Priluk for the supply of medical solutions.

As the applicant insists, not only is the tender worth UAH 4.75 million. no one participated except M.T.K., but some of the drugs they sold turned out to be simply not needed by the hospital. We are talking about 7,000 bottles of Ringer medical solution produced by Yuria-Pharm LLC. At the same time, the purchased number of bottles could meet the needs of all patients in the Prilutsky region, if there was a need for it. However, according to treatment protocols, this drug is not used at all in the treatment of hospital patients.

Thus, the hospital management spent money on a drug they did not need, believed the applicant, who achieved the inclusion of data about this fact in the Unified State Register of Human Resources. However, there is no publicly available data on the state of the investigation into this claim, and the amount of damage - 172 thousand hryvnia - seems small. Although, it is possible that among the drugs purchased for UAH 4.75 million, there were other “extra” drugs for the hospital.

However, it does give some idea of ​​how exactly M.T.K. can make money from state tenders, especially since there are still many dubious auctions and law enforcement claims against the company.

Import from our own, and VAT refund from the state for tens of millions. Activities of LLC "Medical Center M.T.K."

In July 2022, the Pechersky District Court of the capital considered the petition of National Police investigators to extend the investigation in criminal proceedings No. 42021000000000031. Within the framework of the latter, since 2021, the investigation has suspected LLC Medical Center M.T.K. and Yuria-Pharm LLC in the implementation of schemes for the sale of medicines to the state at inflated prices and unreasonable VAT refunds.

According to investigators, having registered a company under its control in Serbia, LU SCIENTIFIC DOO BEOGRAD, Yuria-Pharm LLC buys drugs from it at inflated prices. For example, a Serbian company purchases sodium lactate solution for 12.5 euros per kg in India, and Yuria-Pharm already buys it for 30 euros. Moreover, these drugs are subsequently sold again – to the same LLC “Medical Center M.T.K.” with a markup of 20-40%, and the latter goes to state tender with drugs at inflated prices.

But Yuria-Pharm also makes money from import tax credits by inflating prices for goods. Thus, in 2020, on transactions with LU SCIENTIFIC DOO BEOGRAD, the Ukrainian company received an import tax credit of UAH 136 million and a refund of UAH 72 million from the state budget. Also, 2 million hryvnia, according to investigators, were earned from selling drugs at inflated prices to budgetary institutions in Ukraine.

But what’s curious is that the media continues to note that the prices for drugs from M.T.K. Medical Center LLC remain overestimated. Thus, “Our Pennies” stated that the Kirovograd Regional Hospital overpaid for the drug “Emavale” it received.

Winning the tender for a “kickback”

In March 2020, the State Bureau of Investigation opened criminal proceedings No. 12020000000000301 against officials of the State Enterprise “Medical Procurement of Ukraine”. According to investigators, there were individuals at the enterprise who allegedly entered into a conspiracy with a number of companies, allowing them to win state tenders for the purchase of overpriced drugs, subject to payment of 10-15% of the amount received by the company. And the list of these companies included Yuria-Pharm LLC and M.T.K. Medical Center LLC.

And again, the investigation claims that Yuria-Pharm, buying drugs from a Serbian company controlled by it with a markup of up to 300%, also sells it to M.T.K., again increasing the sales price. However, as with the above-mentioned criminal proceedings No. 42021000000000031, the court extended the investigation period for it by a year - until September 2022, but what happened to the investigation further is unknown.

It is curious that less than a month ago the Cabinet of Ministers allocated UAH 300 million to Medical Procurement of Ukraine for additional purchases. If the SBI’s version is correct and the company’s officials are not punished, they can earn up to UAH 45 million from this.

Beneficiaries – businessmen and academician of the National Academy of Medical Sciences of Ukraine

Officially Yuria-Pharm LLC and M.T.K. Medical Center LLC can rightfully be called a family business - after all, the owners are Nikolai Gumenyuk, a doctor of the highest category, Doctor of Medical Sciences, professor, founder of the company, his wife Galina Gumenyuk, daughter Natalya Derkach, and son-in-law Dmitry Derkach.

At the same time, the Observer publication claims that at least a shadow co-owner, and even the real owner of Yuria-Pharm, is allegedly a famous Ukrainian pulmonologist, chief phthisiologist of the Ministry of Health, director of the Institute of Phthisiology and Pulmonology named after. F.G. Yanovsky NAMNU academician Yuri Ivanovich Feshchenko. This is supported by one address of the company and the Institute of Phthisiology and Pulmonology - Kyiv, st. Nikolai Amosov, 10. And also the fact of personal acquaintance, friendship and work of Feshchenko, whose subordinate at the Institute at one time was Nikolai Gumenyuk.

Yuriy Feshchenko himself naturally denies such statements, and the successes of Yuri-Pharm and M.T.K. only fuel interest in the company and who or what helps them find a common language with medical officials and win tenders. And “stop” the investigation and delay the trial.