Ukrainian iceberg will make an Alliance Boots Titanic

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According to the magazine Forbes Ukraine and the Ukrainian business community a leading international, pharmacy-led health and beauty group Alliance Boots (45 % stake owned by the American drugstore chain Walgreen Company from 2012) plans to acquire 25% stake in leading Ukrainian pharmaceutical distribution company “BaDM” Dnepropetrovsk. Earlier, the stake owned by the American Citi group.

The deal looks attractive: BaDM controls 30% of the Ukrainian market of medicines. And though his annual volume is little more than $ 3 billion, the market is growing every year at 4.5% in commercial terms, and 17% in value. Even in the 2008-09 crisis, when all the industry was rapidly falling, Ukrainian pharmaceutical retained it`s position. The other two shareholders in the company, Alexander & Alexander Sukhodolskiy Dityatkovsky. Each of them has 37.5% of shares. Revenue of the company for the period from June 2011 to June 2012 was $ 1.035 billion, EBITDA (earnings before taxes, dividends, depreciation and amortization) – $ 8.6 million more than 19,200 pharmacies and medical institutions throughout Ukraine cooperates with “BaDM . ” Acquisition of 25% stake estimated at about 50 million pounds.

According to our source, almost all the conditions agreed upon, and the transaction will take place before the end of the summer. Meanwhile, the company BaDM in danger of losing the license for the distribution of drugs that will turn good buy Alliance Boots in a net loss.

The fact that a group of Ukrainian deputies Oleg Ljashko (member of parliament), Sergei Istomin, Victoria Shilova (regional deputies of Kyiv and Dnipropetrovsk region) were investigated for illegal promotion of doctors, sale of prescription drugs without prescriptions for cash, to a total breakdown in the warehouse and accounting. In the video, filmed by a hidden camera, the BaDM employee brings  to deputy Sergei Istomin the prescription drug Zoladex (AstraZeneca) directly in the restaurant and sells it for cash . It is strictly forbidden to Ukrainian legislation, and can result in loss of license and criminal prosecution. Unmasked also a program of conscious tightening treatment Ukrainian patients’;;; Medikard “- total corruption network of doctors, pharmacists and manufacturers, organized by BaDM. The results of the investigation were publicly announced at a press conference in UNIAN by the deputies and confirmed by leading Ukrainian doctors. Events caused a major stir. Topics of the investigation appeared in the opposition Channel 5 and Channel NTN conducted its own journalistic investigation. At the request of an opposition member of Parliament Oleg Ljashko Ministry of Health just named the company’;;;s actions illegal. However, the Ukrainian Pharmaceutical Inspection is in no hurry to publicize the results of the investigation and take away the company’;;;s license. This gives them time to complete the transaction. Information about the scandalous revelations in Ukrainian Pharmacy has become the property of the parliament, Ukrainian media and patients. Knowing these principles can be sure politicians – will not be able to hush up the scandal, and when the information will be in the European media and reach European officials in health, Alliance Boots investors risk to lose their money.

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