New Regime, Same Game: How Power Shifts Leave Drug Trade Monopolies UntouchedGlossary Untouched as Successive Regimes Maintain the Old Trade Practices

Under Đukanović's tenure, Branimir Martinović's company emerged as the leading pharmaceutical distributor. In the decades that followed, it reached a turnover of hundreds of millions, yet it continues to maintain a monopoly, effectively rendering public tenders in this sector meaningless

Predrag NIKOLIĆ

Currently, 906 branded medicines are listed under the basic, supplementary, and special regime categories, all funded by the Republic Health Fund (FZO). Of these, 92 percent are represented or exclusively distributed by Glosarij, a company owned by Branimir Martinović, along with its subsidiaries Glosarij CD and Medica. Another 7.5 percent is represented by Farmerga, a company owned by the German group Fenix, while a few smaller Montenegrin pharmaceutical companies distribute the remaining 0.5 percent.
"This effectively means that for 92 percent of these medicines listed in public procurement tenders, the supplier is predetermined, as they are the authorized agent and distributor-in this case, Glosarij and its subsidiaries," wrote Goran Marinović, former director of Montefarm, in a letter to relevant institutions. "The same applies to Farmerga and the other few players involved. This situation makes public tenders meaningless, as the outcome is known in advance."
Marinović proposed that this issue be addressed through amendments to the new Law on Health Care, suggesting that Montefarm or the FZO take over at least part of the procurement responsibilities to ensure greater transparency and competition.
Instead of responding with a plan to dismantle the decades-long monopoly of a private company over the pharmaceutical market, which continues to grow and now exceeds €100 million annually, the Government dismissed Goran Marinović. The Minister of Health, Dr. Vojislav Šimun of the Europe Now Movement (PES), even announced plans to file a criminal complaint against Marinović for alleged misconduct.
Marinović told the Center for Investigative Journalism of Montenegro (CIN-CG) that his dismissal was politically motivated. During the rule of the Democratic Party of Socialists (DPS), the opposition repeatedly accused Glosarij of enjoying a privileged status. It claimed that the company was one of the key financial backers of Milo Đukanović's party.
Following the change of Government in 2020, Nebojša Medojević, president of the Movement for Change (PZP), accused Milojko Spajić, then Minister of Finance in the 42nd Government, of making an illegal deal with Glosarij. He later alleged that the company was also a financier of the Europe Now Movement (PES) election campaign.
In February 2023, just before officially retiring from Government and at the start of the presidential election race, Spajić launched his campaign from the City Tavern (Gradska kafana) in Cetinje—a venue owned by Branimir Martinović.

DOMINATION
Following the change of Government, Glosarij not only retained the monopoly it held during the rule of the Democratic Party of Socialists (DPS), but its profits also surged significantly. The company was recognized as the fastest-growing business in Montenegro for two consecutive years, in 2021 and 2022.
Over the past three years, Glosarij recorded total revenues exceeding €340 million, €99.9 million in 2021, €112.8 million in 2022, and €128.3 million in 2023. The company posted a net profit of over €5 million each year, totaling more than €16 million across the three years.
The Center for Investigative Journalism of Montenegro (CIN-CG) has obtained documentation indicating the existence of a systemically legalized monopoly in the pharmaceutical procurement system.
In 2023, Montefarm's medicine procurement budget was €99.1 million, of which 83.15 percent was awarded to Glosarij. After a mid-year budget revision raised the amount to €115.4 million, Glosarij still captured 71.38 percent of the total, amounting to €82.4 million. The company also held the dominant share in Montefarm's procurement budget in the previous two years.
According to Article 14 of Montenegro's Law on the Protection of Competition, a market participant is presumed to hold a dominant position if its market share exceeds 50 percent. Furthermore, the law states that two or more participants are supposed to hold a collective dominant position if they control more than 60 percent of the market and face no significant competition.
Such a market structure—particularly in the critical area of pharmaceutical procurement—is considered highly problematic by European Union standards. Under EU law and practice, monopolies in healthcare procurement pose a serious threat to public finances and the integrity of the health system. Yet, Montenegrin authorities, including the Agency for the Protection of Competition, have not taken adequate steps to address the issue.
According to CIN-CG sources, foreign experts, the World Bank, and other international institutions have raised concerns about this monopoly, warning of its risks regarding potential corruption and the absence of genuine competition.
Despite holding an overwhelming monopoly in the pharmaceutical market, Glosarij did not operate alone. Through its affiliated companies—Glosarij CD and Medica—it exercised what the law defines as collective dominance. In the past year alone, Glosarij CD received €13.6 million from the public budget for medicine procurement, and Medica received €6.4 million. Combined with Glosarij's share, the total reached €102.5 million, accounting for a staggering 88.8 percent of the overall budget for medicine procurement in 2023.
This concentration has been consistent in recent years: in 2022, these three companies controlled 76.68 percent of the procurement budget, and in 2021, 76.30 percent.
Another major player, Farmerga, held a smaller yet significant share. 2023 it received €19.9 million, or 17.29 percent of the budget. In 2022, the company's share was 17.17 percent (€13.1 million); in 2021, €14.6 million, making up 18.67 percent of the total medicine procurement funds.
Remarkably, due to a mid-year budget rebalancing, the final disbursements exceeded the original allocation. As a result, private companies collectively withdrew 106 percent of the initial state budget for medicine procurement in 2023, a figure enabled by the reallocation of public funds.

Montefarm's Import Practices: No Imports Unless It's a Crisis
The state-owned company Montefarm has been excluded from these substantial transactions for nearly a decade.
"Montefarm has not imported any medicines in the last seven or eight years, except for occasional emergency purchases when stocks run low. For these purchases, approval must come from the Ministry of Health," Goran Marinović explained to CIN-CG.
"This is a critical moment to implement simple legal solutions that would prevent this practice, curbing unnecessary spending and, ultimately, the enrichment of private individuals. Until this issue is addressed, it doesn't matter who organizes the public procurement process—the outcome of every tender is already predetermined," Marinović stated in a letter to relevant institutions in October last year.
Marinović proposes that the law be amended to allow Montefarm, a state-owned entity, to purchase medicines directly from manufacturers. This way, the state could capture rebates or hidden discounts typically provided to distributors, which often account for around 30 percent of the total turnover. It is estimated that such a reform could save between €28 and €30 million annually on medicines listed for public procurement.
This document highlights that the current Montenegrin pharmaceutical market exhibits characteristics that are uncommon not only in the region but across Europe, stemming from decades of state privatization.
This situation's origins date back to 1991, when the Montenegrin Assembly established the state-owned institution Montefarm, tasked with supplying medicines and medical supplies to the population and health institutions.
1992 Glosarij, Montenegro's first private wholesale drug distributor, was founded in Cetinje. While numerous pharmaceutical companies failed throughout the 1990s, Glosarij thrived and significantly expanded in the new millennium.
The groundwork for the company's monopoly position began in the late 1990s.
"All ministers of health and directors of the Health Fund receive monthly bribes in cash from the pharmaceutical mafia," Nebojša Medojević has repeatedly stated. "This corrupt practice was introduced by Ramo Bralić of the SDP and Aco Đukanović," he added. "For this reason, all assets accumulated by ministers of health and Health Fund directors since 1998, which they cannot justify with their regular income, should be seized!"
The MANS Research Center revealed that in 2013, Glosarij and Farmerga were among the privileged companies that benefited from the Investment and Development Fund (IRF). They received favorable loans and had the Fund purchase their million-dollar claims—€1.8 million each.
As their business expanded, Branimir Martinović established Glosarij CD in 2012.
According to an earlier CIN-CG study, Glosarij received over €90 million from the state for medicines and medical devices between 2012 and 2017. This amount represents nearly half of the total funds available to Montefarm for medicine procurement from the state budget.
Many of these funds went to Glosarij while Budimir Stanišić was director of Montefarm. After stepping down in early 2017, Stanišić bought 50 percent of the shares in Medica, a company with which he had previously entered into procurement contracts on behalf of the state. Goran Martinović, the son of Glosarij's owner, purchased the remaining shares, who left the company in early 2018 and now works there.
The demand for medicines has continued to grow. 2012 Montefarm's budget for medicines was €36.99 million, rising to €49.43 million by 2016. In 2014, Glosarij received €31.6 million of the €42.5 million allocated for medicine procurement by Montefarm. Official data shows that from 2018 to 2022, pharmaceutical spending in Montenegro nearly doubled, from €61.4 million to €119.4 million, representing an average annual growth of 18 percent. During the same period, the number of prescriptions grew by an average of 5 percent annually, from 5 million to 6.2 million.

WHAT RADUNOVIĆ, ČIRGIĆ, HRAPOVIĆ SAID
The issues with medicine procurement tenders were highlighted during the DPS era. In 2012, Miodrag Radunović, then Minister of Health, warned Milorad Katnić, the Minister of Finance, that unless the Law on Public Procurement was urgently amended, Montenegro would face a severe shortage of medicines due to overly complicated and prolonged procedures.
"A tender for insulin procurement was announced, but due to a complaint, the process was delayed by 57 days. I wonder who has the right to jeopardize the lives of 35,000 people with diabetes in Montenegro, simply because bureaucratic procedures—unrelated to life-saving needs—say so," Radunović remarked at the time.
He further emphasized, "Someone sitting in an office, far removed from reality, has equated the procurement of building materials, cement, or bricks with the procurement of medicines."
Concerns about a monopoly in this highly profitable sector resurfaced in 2017, when the Health Fund urged the Ministry of Finance to revise its approach to medicine and medical device procurement. Led by Sead Čirgić, the Health Fund warned that the complex and time-consuming public procurement procedures were fostering monopolies, driving up prices for specific medications, and causing frequent shortages. They also noted that a significant portion of the market was dominated by a single supplier, directly impacting pricing. In some cases, they reported that the price of certain medications had risen by as much as 97 percent in just two years.
At the end of 2018, a scandal broke over the inflated prices of medicines in Montenegro, which were three to five times higher than in Serbia. In response, the Ministry of Health, then headed by Kenan Hrapović, issued a warning to wholesalers and license holders for the sale of medicines. The Ministry stated that if double pricing and unjustifiably high prices continued, they would report the issue to the Ministry of Economy and the Agency for the Protection of Competition. However, no action was taken following this warning. At the time, the Atlas Group alleged that Budimir Šegrt, Hrapović's predecessor and a figure appointed by Milo Đukanović as the director of the Meljine hospital, had been involved in extracting money from the hospital through wholesalers Glosarij and Montefarm.
In a later session of the Montenegrin Assembly, Nebojša Medojević claimed that the authorities had refrained from arresting the owner of Glosarij for illegal activities due to his connections, specifically that he was the godfather of the chief Special Prosecutor, Milivoje Katnić.
MANS (the Network for the Affirmation of the Non-Governmental Sector) revealed in 2021 that in July 2009, Katnić had purchased a 54-square-meter apartment in Podgorica for €67,800. Four months later, he sold the same apartment to Glosarij for €96,000. Katnić justified the €30,000 price increase by claiming he had renovated significantly. MANS alleged that this transaction was a form of corruption through a gift.
When the COVID-19 pandemic began, over €8 million in donations were made to the National Coordinating Body for Infectious Diseases (NKT) in just four months to help combat the virus. Of that amount, €1.7 million was spent, with the most significant portion—€537,837—paid to Glosarij. Public outrage and opposition concerns arose when it was revealed that Hajriz Brcvak, a noted humanitarian, had donated ventilators to the NKT for $4,700 to $5,000 each. At the same time, Glosarij bought similar ventilators and sold them to the state for $19,000 each.

The Final Hours: Health system on the brink of collapse
After the pandemic and the change in Government, the Health Insurance Fund (FZO) warned that the country's health system was on the brink of collapse. It was revealed that the FZO owed approximately €45 million to wholesalers and suppliers of medicines for Montefarm, with nearly 75 percent of that amount—€30 million—owed to a single company, Glosarij, as announced by the then-director of the Fund, Dragoslav Šćekić.
At the end of 2021, Šćekić called on the prosecutor's office to investigate how the health system had been driven into a subordinate and controlled state. He highlighted that Montefarm was unable to import medicines and was instead forced to purchase all its supplies from Glosarij, which had invoiced a staggering €114 million over the previous two years.
In 2022, Šćekić was appointed Minister of Health, but the Europe Now Movement has accused him of numerous failures in the healthcare sector. In September 2022, Montefarm responded to a summons from the PES (Europe Now Movement) and the minister and to accusations from former ministers Milojko Spajić and Jakov Milatović.
"Outstanding debts in 2021 to Glosarij, amounting to €15 million, were transferred to 2022 through factoring, at your insistence, with a firm promise that these funds would be allocated in the 2022 budget. As expected, no action was taken on your promise," Montefarm responded.
At the same time, Nebojša Medojević called on the Chief Special Prosecutor, Vladimir Novović, to investigate a 2021 deal between the then Minister of Finance, Milojko Spajić, and Glosarij, in which the state provided guarantees and paid €17 million through cession.
In March of the previous year, during a government session, the then Minister of Health, Dragoslav Šćekić, emphasized the need to confront the pharmaceutical mafia. At that time, Prime Minister Dritan Abazović suggested that Montefarm should spearhead efforts to establish a pharmaceutical manufacturing facility in Montenegro.
"Montefarm has essentially become the Glovo of medicines in Montenegro—just a distribution center. Instead of focusing on domestic production, Montefarm has been reduced to a logistical hub, where medicines arrive and are then transported to pharmacies. Maybe that was the vision of the previous Government. But I can say with certainty that Montefarm could begin producing medicines, at least those for mass consumption," Abazović asserted.

Plans for a New Medicine Factory Halted
Marinović told CIN-CG they had conducted a preliminary study for the factory project. The study determined that taking on debt was unnecessary, as the construction could be financed using the 6,300 square meters of land owned by Montefarm next to the Atlas Capital Center. The plan projects that the new factory's output could capture around 40 percent of the domestic market share, with the potential for expansion depending on domestic and export market demands.
Marinović further explains that the factory would employ 400 people. In the first year, the projected profit would be €5 million, growing to €25 million by the fifth year. Beyond the market impact, the factory would also address the lack of laboratories in Montenegro and play a critical role in establishing national drug reserves, which the country currently lacks.
In the Development Plan from last year, it was emphasized as a priority that Montenegro should establish at least one factory for essential medicines. One of the key points highlighted was that Montenegro remains the only country in the region without its galenic laboratory (which produces simple drugs in small batches), and there is an urgent need to establish one as soon as possible.
"According to the plan, the new galenic laboratory within Montefarm would produce between 180 and 200 galenic drugs on an area of 700 to 900 square meters, with the required funding for its establishment estimated at €880,000 to €1 million." However, the Ministry of Finance halted the project's implementation last fall.
A year after the public launch of this initiative, the situation remains unchanged. In the last three years and three months of this year, Glosarij secured 226 tenders. In terms of buyers, Montefarm dominates with a 94 percent share, followed by KCCG with 3 percent, and the Institute for Public Health and other buyers, each with 1 percent.

Uncovering the Link: Acting Director of Montefarma and the Glossary Connection
The business continues to grow, with the Martinović family owning one of the largest private pharmacies, Tea Medica. Additionally, Branimir Martinović, the owner of Glosarij, holds a 33 percent stake in the healthcare institution Moj Lab. Moj Lab operates three polyclinics in Podgorica, Ulcinj, and Budva, along with laboratories in 10 other cities across Montenegro. Co-owners of Moj Lab with an equal stake include Dragan Bokan, the owner of Voli, and Milan Mijović, a former director of KCCG and a surgeon.
Vojislav Šimun, the Minister of Health from the PES, recently accused Marinović in the Assembly of allowing certain lobbies to flourish during his tenure, asserting that he is neither part of nor intends to be part of the pharmaceutical lobby.
"One wholesale drugstore accounted for 83.8 percent of the budget in 2021, 106.4 percent the following year, and 90 percent in 2023, while another company held 18 percent, simply because it sold much more expensive drugs," Šimun pointed out.
He also announced that he would refer the matter to the prosecution.
After Marinović's dismissal, Aleksandar Bogavac was appointed acting director of Montefarm. According to his biography, he previously worked as a sales officer and medical representative at the company Farmegra and later as marketing and sales supervisor at the company Alkaloid in Podgorica.
Interestingly, the authorized distributor for the Alkaloid factory in Skopje for Montenegro is Glosarij.

Medicine, Business, and Basketball: Unraveling the Ties That Bind
Vladimir Martinović owns four companies: Glossarij, Glossarij CD, Keywork Estate, and Monte Resort. His primary source of business revenue is Glossarij, which generated 128 million euros in income last year and a profit of 5.6 million euros.
2023 Glossarij CD recorded 14.7 million euros in income, with a net profit of 3.1 million euros.
Keywork Estate, which Martinović wholly owns, reported 411,000 euros in income last year and a profit of 191,964 euros.
Over the past three years, Monte Resort has earned 200,000 euros in income. While the profit was 6,000 euros in 2021, it increased to 94,000 euros in 2022 and 2023.
Through Glossarij, Martinović also owns a 10 percent stake in The Badger MNE. This company has not generated any business income in the past three years and reported a loss of 22,000 euros last year.
Until September 2022, Martinović also owned Gradska kafana in Cetinje, which is now co-owned by Jovan Martinović and Marko Martinović. In 2023, this company achieved 1.3 million euros in revenue and a profit of 77,000 euros.
Previously, Martinović was the co-owner and executive director of Evergreen, a company under blockade since the end of 2005, with a debt of 629 euros. Until mid-2016, he held a 50 percent stake in Terra Properties d.o.o. Belgrade, a company that has been blocked since October 2018, has debts totaling 152,000 euros. Before 2014, Martinović co-owned Monte Vila Kotor, a family business now in liquidation.
He was also an indirect owner of Glossarij M and Glossarij PH, both in liquidation, and co-owned the now-deleted company Sensilab. Until May 2008, Martinović was a co-owner of Baypharm, whose representative was Oleg Obradović, former chairman of the board of First Bank and a key figure in the Telekom affair. Baypharm entered bankruptcy in 2022, with a tax debt of 352,000 euros.
Martinović's sons own Tea Medica, one of Montenegro's largest pharmacies. Last year, the company reported 21 million euros in income and a profit of 972,000 euros.
In the health sector, Martinović, Dragan Bokan, and Milan Mijović co-own Moj Lab, each holding a one-third share. The company's profit dropped from 2.8 million euros in 2021 to 50,000 euros in 2022, and it posted a loss of 462,000 euros last year.
Basketball also connects these three individuals. Milan Mijović is a former doctor for the Budućnost Basketball Club and the Montenegrin national basketball team. Dragan Bokan is the head of the management board of Budućnost Voli, and Martinović is a member of its management board.
It's worth noting that Milo Đukanović, former president of Montenegro, served as the long-term president of the Basketball Association of Montenegro.