The pharmaceutical industry is a high-tech industry, one of the most profitable sectors today. Globalization has led to a strong development of competition fighting for its share of the market. Competition in the pharmaceutical industry means competition in the field of research and development of new drugs, biotechnology and in the field of production of generic drugs. The Croatian pharmaceutical industry is an industry with a long tradition and represents an important link in its economic growth. It is part of the processing industry and accounts for almost 7% of the country's total exports. The largest share of exports, over 60%, is realized on the European Union market. For this reason, the purpose of this paper is to point out the position of the Croatian pharmaceutical industry on the European Union market. The aim of this paper is to analyze data on the comparative advantages of the pharmaceutical industry of EU member states to determine the level of competitiveness of the Croatian pharmaceutical industry and point out the factors that limit the competitiveness of the Croatian pharmaceutical industry in the European Union market. The paper provides an overview of the global pharmaceutical industry and the pharmaceutical industry of the Republic of Croatia, as well as the policy of determining the price of the medicine. The features of competition in the pharmaceutical sector of the European Union and competitiveness in the pharmaceutical industry are discussed. In order to implement the research goal and to determine the level of competitiveness of the pharmaceutical industry of the Republic of Croatia on the European Union market, an analysis of key indicators was conducted. For this purpose, the contribution of the foreign trade sector of the Republic of Croatia is presented in order to obtain a general picture of the impact of imports and exports on the country's GDP growth and the degree of openness of the Croatian economy. The relations between Croatia and selected European countries in the trade of pharmaceutical products are also analyzed, and at the very end the position of Croatia in relation to other members of the European Union in the pharmaceutical industry and on the European Union market is presented. In determining the level of Croatian competitiveness, the following indicators were used in the analysis: Grubbel-Lloyd Index, Import-Export Coverage ratio, Revealed Comparative Advantage, Net-Export Index, Relative Import-Export Coverage Index and Export Competitiveness Index. The results of the research of the Croatian pharmaceutical industry showed that it achieved growth over the observed period, but not enough to achieve a competitive advantage. KEY