The Serbian government has decided to cancel the privatization of Galenika pharmaceuticals.

Beta is reporting, citing the government, that the decision came at the request of a committee which negotiated the sale with the Belgrade-based company’s only bidder – the British-Russian consortium Frontier Pharma-Petrovax.

The deal fell through over Galenika’s EUR 70 million debt to banks. The company owes another EUR 160 million to the state.

The model for the privatization of the company that employs 1,400 people was strategic partnership and sale of a 25 percent stake at the minimum price of EUR 7 million. The Ministry of the Economy has prepared a new model for the Galenika privatization, the agency said.