Bulgaria’s pharmaceutical producer Sopharma received approval from Serbia's commission for the protection of competition to buy the control stock in Belgrade-based pharmaceutical firm Ivancic and Sons for an undisclosed sum. On March 20 2008 Sopharma send a statement with the watch-dog's decision to x3news.com.  According to SeeNews wire agency,  Ivancic and son has four drug stores in Belgrade and has 21 pharmaceutical products in its portfolio.

The step is part of Sopharma expansion plans in the region. The company already bought shares in Ukrainian and Polish companies and has announced plans to enter the Romanian market. 

Sopharma's announcement happened the same day Bulgaria recognised Kosovo as an independent state, which led to Serbia withdrawing its ambassador for consultations. Comments in Bulgaria-language media suggest that Serbia's reaction would not be limited to a diplomatic level but would affect business relations as well.

Serbia is Bulgaria’s shortest route to western Europe and if borders will be closed, as nationalist moods in Serbia suggest, Bulgarian business will have to find its way to Europe via Romania which will increase the cost of products. Further more Bulgarian investments in Serbia could suffer consequences of Bulgaria’s decision to recognise Kosovo.

To avoid such development the creation of a Bulgarian-Serbian economic forum has been suggested by Bulgarian businesses. A round table on the issue will be held on March 24 in Sofia under the initiative of controversial businessman Hristo Kovachki who is in the energy business, commercial Darik radio said on March 20. According to Kovachki Bulgarian business was the fourth largest foreign investor in Serbia with 500 million euro invested so far.