Sandoz on Monday announced an additional investment of EUR 50 million to support increased European manufacturing capacity for finished dosage form (FDF) penicillins, the leading class of antibiotics worldwide.
“The new commitment follows plans announced last year to invest more than EUR 100 million in new manufacturing technology for the production of oral amoxicillin active pharmaceutical ingredient (API) at Kundl, Austria. This investment will increase manufacturing capacity for FDFs of amoxicillin and other key penicillin products,” the drugmaker said in a statement.
Last year, Sandoz also announced that it was investing an additional EUR 50 million for sterile API production at Palafolls, Spain.
Combined with the Austrian federal government’s plans to contribute or coordinate public funding of approximately EUR 50 million, the total amount now being invested in the Sandoz antibiotics network across Europe is over EUR 250 million, the company stated.
“Antibiotics remain the backbone of modern medicine and we are seeing rapidly increasing demand following the unprecedented market swings of the past few years. This investment will help to meet that growing patient need, to support the creation of hundreds of new jobs, and to partially offset the impact of high energy prices by lowering unit costs,” Sandoz CEO Richard Saynor said in a statement.
According to the company, the new three-floor building will be connected to the existing penicillin production facility and will cover an additional area of 1875m². It will focus on bulk formulation and fill-finish activities for penicillins for global distribution, the company claims.
The company also stated that Automation, state-of-the-art technology for API manufacturing and simplified processing will allow Sandoz to integrate all production steps into a single process in one location, resulting in increased capacity and supply reliability.
The expansion will support a double-digit increase in our future output capacity for penicillins, the company claims.
“Minimizing production costs, particularly in the face of soaring energy costs in Europe, is key to our future success, but we also need a market framework that is sustainable in the long run. In economic terms, antibiotics in Europe are still treated largely as commodities, but with one big difference – producers have to supply at fixed price levels, regardless of supply and demand changes. We urgently need to change the operating framework, to introduce basic concepts such as inflation-linked pricing and tenders with criteria that go beyond price,” Saynor added.