Serbia’s pharmaceutical and medical-products sector recorded €925.1 million in exports in 2025, while imports reached approximately €2.58 billion, leaving a €1.65 billion trade deficit, according to the Chamber of Commerce and Industry of Serbia (PKS). Exports covered just 35.9% of imports, highlighting the challenge of expanding domestic production and increasing local value added.
Investment continues, with Germany’s STADA approving an additional €20 million for production capacity at Hemofarm’s Vršac complex. The investment builds on STADA’s established Serbian manufacturing operation, which supplies EU and other international markets.
Pharmaceutical exports and imports
The wider export category includes pharmaceutical preparations, medical and dental instruments, electromedical equipment, and perfumes and toilet preparations. Basic pharmaceutical products and preparations accounted for 66.3% of exports.
Within the narrower pharmaceutical manufacturing category, exports reached approximately €613 million in 2025, up around 39%, while imports approached €1.9 billion, according to reporting based on Statistical Office data. Across the broader product group, exports increased 30.2%, compared with 16% growth in imports. However, the deficit widened because imports remained substantially higher than exports.
Hemofarm and Galenika pursue different expansion strategies
STADA reported more than €50 million in investment during 2025 at Hemofarm, covering machinery, equipment, registrations and licences. Its cumulative investment since acquiring the Serbian manufacturer in 2006 approached €530 million by the end of 2025.
Germany is the largest market for products manufactured in Serbia, according to STADA, which also supplies other EU and international markets. The additional €20 million investment is intended to increase production capacity, although higher output does not automatically mean expansion into active ingredients, biological medicines or original drug development.
Meanwhile, Galenika, part of Brazil’s NC Group, acquired 100% of Slovenia’s Sanofarm in January. The deal strengthened its presence in Slovenia and Croatia and secured distribution rights for selected Italian manufacturers. Unlike domestic manufacturing investment, distribution expansion does not necessarily increase Serbian production.
Imported ingredients and regulatory requirements
Serbia’s pharmaceutical industry remains focused largely on generic medicines and depends on imported active pharmaceutical ingredients, particularly from China and India, according to reporting citing PKS. The chamber estimates that around 80% of pharmaceutical investment goes towards machinery and equipment.
Developing local ingredient production would require competitive costs, suitable technology, sufficient demand and regulatory compliance. Selective investment in specialised ingredients, formulations, analytical services and production processes could offer opportunities where manufacturers have established technology and customers.
For companies supplying the EU, the European Medicines Agency (EMA) requires compliance with EU good manufacturing practice, regardless of where production takes place. Manufacturing authorisations, inspections and product approvals can affect when a facility begins generating revenue.
Lenders must therefore assess approval timelines, customer commitments, working-capital requirements and production ramp-up costs, rather than relying solely on installed capacity. Established manufacturers may support expansion through existing earnings and distribution networks, while new projects without approved products or contracted sales carry greater financing risks.
Higher-value production and domestic value added
STADA’s specialty pharmaceuticals segment, which includes biosimilars and innovative medicines, generated more than €1 billion in group-wide revenue in 2025, up 17%. These figures do not represent Serbian manufacturing revenue but illustrate the scale of more specialised product markets.
Biosimilars require comprehensive comparability studies addressing quality, safety and efficacy. Entering this segment would require access to technology, development expertise, manufacturing capabilities and commercial rights.
For Serbia, investment performance should be measured through additional domestic production value, skilled employment, technology transfer and local supplier contracts, alongside export growth. Engineering, laboratory services and equipment maintenance can also create domestic value even when some pharmaceutical ingredients remain imported.
