The Analysis of the pharmaceutical industry on the example of the business analysis of the largest producer in the region Pliva Croatia Ltd. was conducted based on selected methods, financial statements and calculated indicators. The conducted analysis gave an insight into certain parts of the operating business of the company and the industry in general. In order to get an overview of the characteristics of the pharmaceutical industry, the first part of the thesis includes the analysis of the pharmaceutical industry in the European Union, the region and the Republic of Croatia. The thesis continues with the analysis of the financial statements of the company Pliva Croatia Ltd. which provided an overview of the operating business, while in the following part of the thesis indicators presented the status and performance of the operating business. Furthermore, with the analysis of the adequacy of the volume and dynamics of the financial situation of the enterprise, the investment analysis, financing analysis, liquidity and solvency analysis a detailed overview of the business and financial situation of the company Pliva Croatia Ltd. was given. In the last part of thesis, an analysis comparing the financial situation of the companies JGL d.d. and Belupo d.d. with Pliva Croatia Ltd. was conducted in order to present in the best possible way the operational business and the strong market position of Pliva Croatia Ltd. as well as the pharmaceutical industry as one of the most profitable industries of the Croatian economy.