Initiative for the pharmaceutical industry to be granted strategic industry status in Sarajevo Canton

Pharmaceutical manufacturers based in Sarajevo Canton, three of them, employ over 1,000 people. In 2014, they generated revenue of 166 million KM, of which 80 million KM was generated in foreign markets. In the past five years, they have directly invested 102 million KM in capital production and development projects. For the same period, 73 million KM was paid to the state in taxes and contributions. The number of cooperants from BiH is close to 1000 domestic companies from various fields, reports the Patria News Agency. 

Despite these indicators, the domestic pharmaceutical industry has been facing weak or no state support for years and the fact that the representation of domestic companies in the total turnover of medicines in BiH is at a low level of about 17%.

According to official data from the Agency for Medicines and Medical Devices of BiH, in 2014, 138 companies generated revenue from medicines in BiH, of which only 5 were domestic. In contrast, the share of domestic manufacturers in the consumption of medicines financed by health insurance funds in neighboring countries exceeds 40%.

For comparison, in neighboring Croatia, the pharmaceutical industry has been granted strategic status, which brings a number of benefits to local manufacturers, manifested through investment incentives and tax breaks for research and development. The synergistic effect of these measures significantly contributes to the creation of new value and additional employment, especially for highly educated personnel. Domestic pharmaceutical companies are constantly recording an increase in the number of employees. The share of employees with higher education is up to 50%, and as such, it is contrary to the trend of highly educated professionals leaving Bosnia and Herzegovina.

Considering all of this, especially the export orientation of the domestic pharmaceutical industry, companies from the Sarajevo Canton expect the cantonal government to recognize its strategic importance and adopt appropriate incentive measures for domestic manufacturers. This certainly also applies to their adequate treatment in the context of their presence on the essential medicines list of Sarajevo Canton, the revision of which is expected immediately after the adoption of the new Federal List of Essential Medicines.