Association of Domestic Drug Manufacturers of FBiH: We oppose the increase in imports of foreign drugs

SARAJEVO, (Patria) - The Association of Domestic Drug Manufacturers in FBiH has issued a statement regarding the current issues related to the legal obligation to harmonize the positive list of drugs of Canton Sarajevo with the List of Essential Drugs of the Federation of BiH. As stated, they are grateful for the support of the KS Ministry of Health and Minister Zilhe Ademaj, as well as the KS Government, to domestic industrial/pharmaceutical manufacturers in the past period.

- Thanks to that support, jobs have been saved and conditions have been created for the further development of domestic companies and new employment. Canton Sarajevo has recognized the pharmaceutical industry and declared it a strategic industrial branch, thereby expressing its commitment to long-term support for the domestic manufacturing sector.

As members of the Association of Domestic Drug Manufacturers in FBiH, we absolutely support the expansion of the KS positive drug list with new molecules whose application will contribute to improving the quality of life of patients who will be introduced to new effective therapeutic programs. This is also an obligation when it comes to harmonizing cantonal lists with the current List of Essential Drugs of FBiH, adopted by the Federal Ministry of Health.

However, what we want to draw attention to and what we oppose is that with the introduction of new molecules to the list, the list is simultaneously intended to be expanded with parallel generic foreign industries. This is not a legal obligation, as it is sometimes attempted to be presented, nor will the expansion of content with an unlimited number of identical imported drugs contribute to better healthcare and more effective patient therapy - the Association states.

Article 9 of the Law on Drugs of FBiH provides for the possibility of limiting the number of protected drug names that meet the prescribed conditions, based on experience in therapeutic application, supply security, etc.

- In order to support the development of domestic industry, the Law stipulates the mandatory inclusion of drugs from domestic industry on cantonal lists, provided that legal conditions are met. In European Union countries, it is a practice to provide incentives to the domestic generic industry through various forms of support. Such a practice has been recognized and successfully implemented for two years by the Government of Canton Sarajevo on the initiative of the Assembly of Canton Sarajevo, as is the case in other cantons in FBiH.

Positioning domestic production and giving domestic products an adequate place in the market brings a number of benefits to the wider social community, always prioritizing the interests of patients and never compromising the top quality and effectiveness of the generic drugs we produce.

On the other hand, unjustified favoritism towards further increasing drug imports means an even greater outflow of financial resources from BiH, and thus a number of indirect consequences beyond the healthcare system. This is supported by the fact that the ratio of consumption of drugs from the essential list in Canton Sarajevo between domestic and foreign manufacturers is currently 30:70, in favor of foreign ones, and this ratio is significantly more unfavorable for domestic manufacturers when considering FBiH. Thus, with an unnecessary expansion of the positive drug list in Canton Sarajevo with import parallels, the share of domestic manufacturers would be significantly reduced.

Foreign generic companies, through their representative offices, operate exclusively commercially, employ a minimal number of employees, while all generated revenue is withdrawn to their home countries, thus contributing to the growth of those countries' economies. Unlike them, domestic manufacturers continuously invest in development, investments, and employment, with strong social responsibility, and actively contribute to building a sustainable healthcare system. The facts that domestic manufacturers based in Canton Sarajevo have paid almost 95 million KM in taxes and contributions alone in the past five years support the presented claims. At the same time, almost 80 million KM has been invested in capital investments, which, in addition to adding value to companies, also leads to the creation of new jobs - the Association states.

Ultimately, we expect that the Ministry, led by Minister Ademaj, and the KS Government will continue to support the processes of preserving jobs in the domestic manufacturing sector, especially for Canton Sarajevo in the strategic pharmaceutical industry.