SERBIA AND MONTENEGRO OUTLINES ITS NEW DRUGS POLICY

Serbia and Montenegro's Ministry of Health has met with the country's drugmakers in order to discuss the creation of a national medicines policy to improve drug quality, consumer access and distribution. New proposals include encouraging the harmonisation of the Balkan state's drug sector with European Union (EU) GMP standards and the forming an list of essential, reimbursable medicines. It is hoped such reforms will boost performance and aid the country's candidacy for EU membership.

Serbia and Montenegro's drug market is relatively small -- valued at just US$266mn at consumer prices in 2004 -- while political and economic instability over the last decade has taken its toll on the sector. However, the local drug industry is expected to develop in the coming years, with the EU drawing up plans to help develop the country's healthcare infrastructure.

Foreign investment in domestic drug manufacturing is also expected to begin in earnest over the next decade. Recent government legislation has improved operating conditions for foreign companies, although drug regulation still favours domestic generics firms. Due to the sector's underdeveloped nature, copying of patented drugs is widespread.