One of Russia's largest pharmaceutical distributors Katren could gain control over Erkafarm, the country's second-largest pharmacy chain in terms of revenues (operating under Doctor Stoletov, Ozerki and Samson-Farma brands), Vedomosti daily reported citing unnamed sources close to the deal.

As reported by bne IntelliNews, Apteka.ru online platform of Katren already made it to the top ten of Russia largest e-commerce players in 2019. In 2020 Apteka.ru achieved RUB50bn ($0.7bn) in sales.

Reportedly, Katren has now asked the Federal Anti-monopoly Service (FAS) to clear its acquiring a 50.01% stake in Erkafarm. The latter would raise RUB5bn to cover its debt to Russia's largest bank Sberbank and main suppliers Protek and Puls (total debt of over RUB8bn).

To remind, in May 2020 the Russian government provided a list of rules and licensing for the online sale of OTC medicines, facilitating the development of pharmaceutical e-retailing. A number of large retail and e-commerce players announced moving into the segment.

Analysts surveyed by Vedomosti believe that adding Erkafarm retail points will allow Katren to significantly boost the number of distribution points for online orders via Apteka.ru, especially given the rivalry between the Sber E-Apteka service and Russia's largest bank Sber.

As of 2020 Erkafarm operated 1,079 pharmacies and made RUB68bn in profit with a marker share of 4.8%, being the second-largest chain after Rigla.

Katren is Russia's second-largest pharmaceutical distributor with RUB58bn sales in 1Q21 alone with a market share of 12.5%. Apart from the Apteka.ru online sales service, it also operates the Melodiya Zdorovya pharmacy chain with RUB26bn sales in 2020 (Russia's 12th largest with 842 retail points). 

Erkafarm was founded in 1994 by Ivan Saganelidze, who later became a shareholder of another major pharmacy chain 36.6. After 2021 Erkafarm was sold to Haden Group for $60mn, according to Vedomosti.

Sources previously told RBC business portal and Vedomosti that Erkafarm is affiliated with Imeriya holding of Sergei Matvienko, the son of the head of the Federation Council and veteran politician Valentina Matvienko.