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Sandoz and Austrian government announce joint antibiotics manufacturing investment

28 Jul 2020

Novartis' generics and biosimilars division, Sandoz, has announced a joint investment with the Austrian federal government worth over EUR 150 million to boost integrated antibiotics manufacturing in Europe.

The planned combined investment includes major innovative technology development and implementation for large-scale manufacture of active ingredients for penicillin products.

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, developing and introducing innovative manufacturing technology for both active pharmaceutical ingredients (APIs) and finished dosage forms (FDFs).

Under the joint plan, which is subject to formal approvals by both parties, 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 European-based production of essential medicines.

Sandoz and the Austrian government anticipate a formal closing of the agreement before the end of the year.

The government funding would primarily support new process technology to produce APIs 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.

Sandoz said it produces enough penicillin products at Kundl to potentially meet all current Europe-wide demand. Kundl is the Sandoz competence center for antibiotic FDFs and the focal point of its European antibiotics manufacturing network.

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