Arrests Made Following Raids Linked to Paxlovid Trafficking

On July 17, coordinated law enforcement operations took place in Munich, Regensburg, and Bayreuth, resulting in 16 raids and the execution of two arrest warrants.

The Bavarian Central Office for Combating Fraud and Corruption in Healthcare (ZKG) reported that the suspects, including pharmacists, pharmacy staff, and intermediaries, are accused of ordering Paxlovid, a Covid-19 medication procured centrally by the Federal Ministry of Health (BMG) during the pandemic, in multiple instances throughout 2023. They allegedly sold this medication to intermediaries on the black market, causing an estimated total damage of approximately 2.6 million euros.

In Germany, both the export and trade of Paxlovid are legally prohibited. The accused individuals reportedly ordered nearly 10,000 packs of Paxlovid and sold them on the black market without prescriptions or the necessary wholesale licenses.

The investigation was initiated after the BMG identified irregularities during its review processes. The ZKG, alongside the criminal police, executed 16 search warrants and two arrest warrants on July 17, deploying around 100 police officers and four prosecutors. During the raids, documents and data storage devices were seized for further analysis.

The ZKG's statement outlines the reasons behind the emergence of a thriving black market for Paxlovid during the pandemic. A significant demand for antiviral medications aimed at treating Covid-19 surged in China from late 2022, primarily due to the absence of a government-organized supply chain for Covid-19 treatments, prompting individuals in Germany to seek alternative access points.

Pharmacies and wholesalers initially received compensation for the distribution of Paxlovid funded by federal resources, with no billing through statutory health insurance or patient co-payments involved.

The ongoing investigation aims to uncover the full extent of the trafficking network and its impact on public health and safety.