Tender for privatisation of Serbia’s Galenika to be launched within days

By bne IntelliNews March 11, 2016

A tender process for the privatisation of Serbian pharmaceutical giant Galenika will be launched within a few days, Serbia’s minister of economy, Zeljko Sertic, told daily Vecernje Novosti on March 10.

Galenika was originally listed as one of 502 public companies supposed to be privatised by the end of 2015. However, it was included on the list of 17 companies of strategic state interest whose privatisation deadline has been extended by up to one year under amendments adopted by the Serbian parliament in May 2015.

Sertic said that there are some companies interested in Galenika, who are already negotiating with its privatisation adviser.

“A transparent and public process is important to us,’ he said.

Daily Blic reported on January 30 that four global pharmaceutical giants, American Pari Biomedical, Basel-based Piqur, the UAE’s Julphar and Palestine’s Pharma Care PLC have shown an interest in a strategic partnership with Serbian pharmaceutical company.

Besides huge financial debts, Galenika struggled under allegedly corrupt management for years. Efforts to tackle this problem finally started in April 2014 when Serbian police arrested several of Galenika's former managers, accusing them of abuse of office and siphoning off money from the company. Most were members of the Socialist Party of Serbia (SPS), which has been a minority coalition partner or supporter of all Serbian governments since 2004. Both the tax authorities and the police brought charges against the former managers, alleging they caused some €75mn damage to Galenika, which benefitted local drug trader Velefarm. The process is still ongoing.

“I do believe we can sell Galenika. It has a serious market and our jobs is to help it to maintain production,” Sertic told Vecernje novosti.

Galenika once had a market share of 60% in the former Yugoslavian markets of 24mn people. Nowadays, it controls only some 10% of the Serbian market of 7.1mn people but still employees 1,400 people.

 

Related Articles

PMs of Serbia and Kosovo clash at Western Balkan summit ceremonial dinner

Serbian Prime Minister Aleksandar Vucic reportedly confronted his Kosovan counterpart at the ceremonial dinner during the Western Balkan Summit, over Pristina’s decision to re-register ... more

US puts Albania, Bosnia and Serbia on blacklist of major money laundering countries

The US department of state has included Albania, Bosnia & Herzegovina and Serbia in its latest list of major ... more

27 companies submit bids for Belgrade airport concession

Serbia’s Minister of Construction, Transport and Infrastructure Zorana Mihajlovic announced on March 13 that 27 companies responded to Belgrade’s public call for a 25-year concession to operate ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss