Montefarm, the state-owned pharmaceutical wholesaler and distributor in Montenegro, has demonstrated strong financial health and dependable supply operations throughout 2025, playing a critical role in maintaining the stability of the public healthcare system amid rising costs and ongoing global supply pressures. According to Montefarm’s Director, Aleksandar Bogavac, disciplined financial management, careful cash-flow planning, and close coordination with the Health Insurance Fund have been essential in preserving liquidity and ensuring uninterrupted access to medicines and medical supplies.
Bogavac stated that regular inflows from the Health Insurance Fund and strict expenditure control have enabled Montefarm to meet its obligations to suppliers on time, securing continuous deliveries to its network of 55 state pharmacies as well as to all public healthcare institutions across the country. He emphasized that the company’s operational focus remains on system reliability rather than commercial profitability, given Montefarm’s role as a backbone of Montenegro’s public health infrastructure.
Reviewing last year’s performance, Bogavac described 2025 as a period of operational stability and gradual improvement despite a challenging external environment. Targeted cost rationalisation, strengthened internal procedures, and more efficient logistics were highlighted as key achievements. Throughout the year, pharmacies within the Montefarm system remained consistently supplied, with no prolonged or systemic shortages recorded. In addition to retail distribution, Montefarm continues to supply hospitals, emergency services, and national immunisation programmes, reinforcing its strategic importance to the healthcare system.
While global pharmaceutical supply chains remain exposed to disruptions related to production bottlenecks and raw-material shortages, Montefarm has managed to maintain continuity of supply. Bogavac explained that potential disruptions are mitigated through proactive procurement planning, continuous communication with suppliers, and the ability to source equivalent medicines approved under Montenegro’s official pharmaceutical list. When delays occur, alternative procurement channels and internal stock redistribution are used to minimise impact on patients and healthcare providers.
Rising prices of medicines, energy, and logistics services have increased operational pressure, but Montefarm has responded by optimising distribution routes, improving warehouse efficiency, and strengthening cost controls. Bogavac stressed that Montefarm does not determine medicine prices, which are regulated through national procurement and reimbursement frameworks. The company’s mandate is to ensure transparent procurement, stable supply, and responsible use of public funds, rather than to influence market pricing dynamics.
Montefarm’s liquidity position remains stable, with supplier payments aligned with funding transfers from the Health Insurance Fund. Bogavac underlined that predictable funding flows are a prerequisite for securing continuous deliveries and maintaining trust with international and domestic suppliers. Coordination with the Ministry of Health and the Health Insurance Fund allows for better planning, reduced risk of shortages, and improved alignment between healthcare needs and available resources.
Addressing persistent global challenges, particularly shortages affecting older and less commercially attractive medicines, Bogavac noted that improved risk-management practices have reduced exposure. These include higher safety stocks for critical drugs and diversification of supplier bases. When a contracted supplier fails to deliver, Montefarm can procure the same medicine from alternative authorised distributors, helping stabilise the market and protect patient access. However, he acknowledged that sourcing specialised medicines for rare or complex conditions remains more demanding due to regulatory procedures and import constraints.
Montefarm is also advancing its modernisation agenda, with investments in digital systems to improve inventory management, demand forecasting, and distribution oversight. Enhanced digital tools are already contributing to better operational visibility and faster decision-making. Looking ahead, the company plans to expand its pharmacy network, with new locations planned in Sutomore and central Podgorica, aimed at improving accessibility and easing pressure on existing outlets.
Strategic infrastructure development is also on the agenda, including plans for a modern distribution centre built in line with European standards. As Montefarm marks 35 years of operation, management views these investments as essential to strengthening long-term resilience and ensuring that Montenegro’s public healthcare system remains reliably supplied in an increasingly complex pharmaceutical market.
