Medicine Production & Delivery

Medicine Production & Delivery

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Medicine Production & Delivery
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Biotechnology and Pharmaceuticals
Business Model Description

Build and operate production plants and laboratories for medicines for non-communicable diseases (cardiovascular diseases, cancer, chronic respiratory diseases, diabetes, obesity, etc.), vitamins, and supplements. Develop complementary delivering mechanisms directly to customers, using various methods such as online ordering, mobile apps or delivery services. Needed inputs include research and development, production facilities, and a broad knowledge base of researchers and labor. In addition, companies often rely on patents and other forms of intellectual property and must comply with strict regulatory requirements governing their products' development, testing, and marketing. In Serbia, public health insurance is mandatory and is provided by the National Health Insurance Fund. The fund covers the cost of medical services, including doctor visits, hospitalization, diagnostic tests, and medication. Private health insurance is also available in Serbia, but it is not mandatory, and the coverage varies depending on the policy. Some medications may not be covered by public health insurance in Serbia, particularly newer or more expensive drugs. In such cases, patients may need to pay for the medication out of pocket or seek alternative treatments. However, the government is working to expand the list of drugs covered by public health insurance to ensure that everyone has access to essential medication.

Expected Impact

Increase accessibility of medicines and improve healthcare situations, especially for marginalised communities.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
ROA: > 20%
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8)
Sector Sources
  • 1) Statistical Office of the Republic of Serbia. Age pyramid of the population, 2021. 2) E-klinika. More and more people suffering from lung cancer, Serbia is the first in Europe in terms of mortality, 2022. 3) National Assembly, 2010-2017, Law on Medicines, 2022. 4) EY Serbia. Possible directions to increase health efficiency system in the Republic of Serbia, 2016. 5) Peterhof Consulting stakeholder consultations at Peterhof office on 21st of February, 2023. 6) Legal information system of the Republic of Serbia. The strategy of public health in the Republic of Serbia 2018–2026, 2018. 7) EuroNews Serbia. Small farmers in big debt for health insurance, 2022. 8) Government. Strategy for the continous improvement of the quality of health care and patient safety, 2009. 9) PKS Partner, 2021. 10) Marina Antić Levnajić. Market overview and challenges for pharma industry in Serbia, 2021. 11) The World Bank. 2019. Out of pocket expenditure. 12) Ministry of Finance. 2021. Law on the Budget of the Republic of Serbia for 2021. 13) Statistical Office of the Republic of Serbia. 2021. GDP. 14) WHO. 2020. Health Budget. 15) Danas. Trampoline: Last year, 55,305 people died from diseases of the heart and blood vessels in Serbia, 2021. 16) Biz Portal. The capital of Serbia is becoming a hub for the development of artificial intelligence in health care, 2022. 17) Ministry of Finance. 2023. Law on the Budget of the Republic of Serbia for 2023.
IOA Sources
  • 21) Marina Antić Levnajić. Market overview and challenges for pharma industry in Serbia, 2021. 22) Radojko Lukic. Analysis of efficiency of Pharmaceutical companies in Serbia, 2022. 23) SDG Investor Platform, 2022. 24) Fund for Innovation Activity. 25) Deloitte. Pharma ROI, 2022. 26) RAS. Chemical and Pharmaceutical Industry in Serbia, 2017. 27) RAS. Invest in Serbia, 2021. 28) Our World Data. 2021. 29) SDG Tracker, 30) Lovorka Nikolic. 2019. Pharma Market in Serbia from WHS perspectiverole, trends and challenges. PowerPoint Presentation ( 31) Grad Kruševac. Impressive business results in the year of Merima's Yubiley, 2019. 32) Naled. 33) Slobodna Evropa. Equal access to vaccines, 2021. 34) Within 3. Compliance in Pharma industry, 2021. 35) McKinsey. Capital expenditure in Pharma, 2019. 36) Europian Commission. Pharmaceutical Health services. 37) Statistical Office of the Republic of Serbia.Population by ethnicity and mother tongue, 2011 Census of Population, Households and Dwellings in the Republic of Serbia. 38) Unicef. Access of women and children to services in rural areas of Serbia and proposal of measures for improving the situation, 2011. 39) National Assembly. Program od the Government of th Republic of Serbia of the candidate for Prime mininster Ana Brnabic, 2020. 40) Zuniclaw. Tax benefits for employees in R&D, 2023. 41) Development strategy of the institute for molecular genetics and genetic engineering 2016-2026; 42) ALIMS. 2022. Work Program for 2022. 43) Government. Strategy for Social inclusion of Roma in Republic of Serbia 2022-2030. 2021. 44) RZS. 2022. 45) Oxford. 2010. Regulations in Pharma industry. 46) Katie Dwyer. 2018. Critical risks facing Pharmaceuticals.