Apteekide Koostöö Hulgimüük (AKH) a stake in which belongs to businessman Aivar Linnamäe will be ceasing commercial activities from November 1. The company currently controls 22 percent of the human pharmaceuticals market in Estonia.
CEO Maikki Lemetti said the move is the owner's decision and that the company will continue operating normally until October 31.
Lemetti said in a press release on Wednesday that AKH will do everything in its power for the process of closing shop to be as smooth as possible. "I would like to sincerely thank our loyal customers, partners and colleagues for long-time cooperation," Lemetti added.
AKH has been active on the Estonian market since 2004.
AKH controlled 22 percent of the human pharmaceuticals market in Estonia at the beginning of the year, while 29 percent belongs to Magnum Medical OÜ and another 29 percent to Tamro Eesti OÜ both of which are owned by Aivar Linnamäe's brother Margus Linnamäe.
Estonia had 62 licensed pharmaceuticals wholesalers at the beginning of 2020, three of whom are only licensed to sell veterinary pharmaceuticals. Thirty registered wholesalers sold human pharmaceuticals to pharmacies last year.
The Ministry of Social Affairs asked the Competition Authority to look into the price formation of brothers Aivar and Margus Linnamäe's companies on the pharmaceuticals market and to determine whether they have a dominant market position.
Editor: Marcus Turovski