Antibiotics are the backbone of modern medicine. Sandoz plans a joint investment together with the Austrian federal government to strengthen the long-term future of integrated antibiotics manufacturing in Europe. The joint plan is subject to formal approvals by both parties; a formal closing of the agreement is anticipated before the end of the year.
Sandoz, the Novartis generics and biosimilars division, is the #1 global supplier of generic antibiotics. Kundl in Austria is the center of the last remaining integrated production chain for antibiotics in the western world. The company produces enough penicillin products there to potentially meet all current Europe-wide demand.
Sandoz intends to invest more than EUR 150 million over the next five years to strengthen the long-term competitiveness of its integrated antibiotic manufacturing operations at Kundl. The company wants to develop and introduce innovative manufacturing technology for both active pharmaceutical ingredients (APIs) and finished dosage forms (FDFs).
The Austrian federal government would contribute or coordinate public funding totaling approximately EUR 50 million towards the total investment, as part of its efforts to increase the European-based production of essential medicines. The government funding would primarily support new process technology to produce API for penicillin products at Kundl. Sandoz would commit to related penicillin API production in Europe for the next ten years, despite fierce global price competition, particularly from China.
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