Marko Barišić: Croatia’s pharmaceutical sector, led by Pliva and Pfizer’s Hospira, continues to bolster exports to the US, with 40% of shipments comprising medicines. Despite initial trade concerns, firms report surging profits, while Hospira leads in wages, averaging €2,650 net monthly pay, underscoring the industry’s resilience and growth.
Exports to the US remain steady despite initial concerns
Following initial fears over announced US tariff increases, the export of Croatian goods to the United States continues its usual trajectory. This includes the continued export of pharmaceuticals which constitutes a significant portion.
Croatian weaponry, primarily machine guns and pistols, is still being shipped across the Atlantic. Smaller quantities of high-quality food and chemical industry products are also exported, with around 40% of Croatia’s exports to the US consisting of pharmaceuticals and related products.
Pliva leads the sector under Teva ownership
Few Croatian companies operate in this field, with Zagreb-based Pliva being the most significant. Although no longer Croatian-owned since its 2008 acquisition by Israeli firm Teva, Pliva still employs around 3,000 staff and retains a degree of autonomy within the corporation. Within the pharmaceutical industry, Pliva holds a prominent position.
According to recently published data, Pliva’s revenue last year approached €1 billion (€958 million), while its post-tax profit surged by 65% compared to 2023, reaching €131 million.
Jadran Galenski Laboratorij and Belupo post strong growth
The second-largest pharmaceutical company is Rijeka-based Jadran Galenski Laboratorij. Their total revenue last year stood at €162 million—a 20% year-on-year increase, as reported by portal Danica. Profit also rose sharply by 41% compared to 2023, reaching €18.4 million. The firm employs just over 1,300 people, enhancing the pharmaceutical landscape.
Third-ranked Belupo, headquartered in Koprivnica (also home to Podravka), reported revenue of €131 million—a 12% annual increase—with profit jumping 43% to €29 million. The company has slightly fewer than 1,000 employees.
Pfizer’s Hospira leads in investment and innovation
Fourth is Pfizer’s biotech subsidiary Hospira, a branch of the US giant operating facilities near Zagreb in Savski Marof. Last year, Hospira recorded a turnover of €95 million and a profit of €27 million, with 450 employees.
The company produces drugs for rare diseases worldwide. In 2022, it invested over €100 million into its Croatian plant, collaborating with Swedish biopharmaceutical firm Sobi, which develops such treatments.
Average salaries vary across pharmaceutical firms
Notably, Croatian monthly salaries are typically reported as net figures, with gross amounts roughly 30% higher depending on tax brackets, number of children, location and other factors.
Understanding Croatia’s wage taxation system
Croatia’s wage tax rate stands at 27.6%, covering health and pension contributions. Additional levies apply, including a local surtax (prirez) in larger municipalities (by comparison, Slovenia’s wage tax is 36.3%).
Pfizer’s Hospira offers the highest average net monthly salary at €2,650. Jadran Galenski Laboratorij follows with €2,060, Pliva at €2,000 and Belupo at €1,900.
Sector thrives despite global challenges
Overall, Croatia’s pharmaceutical industry saw significant revenue and even stronger profit growth last year. The US remains a key market, underscoring the sector’s resilience amid fluctuating trade conditions.