On 19 March, the High Court of Justice in London, upon application of Pharmaceutical  Firm Darnitsa, attached accounts of Metabay Import/Export Limited, a UK company, acting as an intermediary in the purchasing by SIC Borshchahivskiy Chemical Pharmaceutical Plant PJSC (BCPP) of raw materials from German Farmaplant Fabrikation Chemischer Produkte GmbH.

On 26 March, a similar decision on the attachment of funds in accounts of Metabay was made by a Swiss court that agreed with the arguments of Darnitsa.

The point of discussion is that, at least from 2014, BCPP has been purchasing pharmaceutical raw materials from Farmaplant at prices that, according to Darnitsa, are substantially higher than the market price, and the overpaid amount, according to Darnitsa, is transferred to accounts of Metabay, a UK company. The latter, in its turn, looks like it is controlled by the management of BCPP.

“Darnitsa as a shareholder with the largest shareholding brought, in the name of BCPP, an action with a Ukrainian court against bad faith managers of the company seeking the payment of multimillion damages suffered by BCPP. To avoid any further transfer of the funds withdrawn to offshore accounts, the courts in England and Switzerland, upon application of Darnitsa, attached the funds,” Yevgen Levitskyi, attorney, Aequo’s counsel, comments.

It is a reminder that on 29 October 2020 the Supreme Court confirmed the title of Pharmaceutical Firm Darnitsa to almost 30% of shares in BCPP purchased in 2015. Also, the Supreme Court upheld the decision of the Kyiv City Commercial Court dated 4 November 2019, which court decided that the sale of shares to Darnitsa was carried out in compliance with the laws.

Pharmaceutical Firm Darnitsa was established in 1930. Since 1998, it has been a leader in Ukraine by medicine production output by volume. Strategic areas of the portfolio development include cardiology, neurology, and pain relief solutions. Zahorii family members are beneficiaries of the company.

The project is guided by Yevgen Levitskyi, attorney , Aequo’s counsel, and Oleksandr Zubrytskyi, Aequo’s attorney.