Serbian police on Saturday arrested eight people suspected of embezzling some 12 million euros ($15 million) from the country's main pharmaceutical firm Galenika.
The eight, including a former Galenika manager, are suspected of misappropriating the money through fraudulent deals while buying raw materials for medicine and through illegal sales of medicine, Serbian police head Milorad Veljovic told reporters.
The arrests were carried out in Belgrade and two other Serbian towns, he added.
Serbia's nationalist populist government, which came to power over a year ago, has pledged a "merciless fight" against corruption and organised crime.
The government is currently looking for a strategic partner for Galenika, which employs 2,700 people. The firm was once the pride of Serbia's pharmaceutical industry but is now carrying 170 million euros in debt.