Sandoz announces €150 million investment in antibiotic production

pharmafile | May 18, 2021 | News story | Manufacturing and Production |  EU, manufacturing, production 

Sandoz, a division of Novartis, has announced plans to develop its European antibiotics manufacturing network by expanding the production capabilities of its Austrian and Spanish sites with a €150 million investment.

In a release, Sandoz confirmed that it will invest more than €100 million to introduce new manufacturing technology for the production of oral amoxicillin, an active pharmaceutical ingredient (API) for its leading penicillin product, in its site in Kundl, Austria.

In a release, the company said it aims to be the only major end-to-end antibiotics supply chain in Europe, covering all production steps from API to Finished Dosage Forms (FDF) for many leading antibiotics.

In addition to the Kundl site investment, Sandoz will spend €50 million in new production technology and increased capacity for the production of sterile penicillin APIs and sterile API mixtures in its site in Palafolls, Spain.

Sandoz will phase out the current production of oral APIs at the Les Franqueses site in Spain, which it plans to close in 2024 with sterile API production planned to transfer from Kundl to the new facility at Palafolls in 2025.

Sandoz CEO, Richard Saynor, said: “Antibiotics are the backbone of modern healthcare and a key strategic pillar of our business. Despite a temporary drop in demand due to the pandemic, we remain as confident as ever in the mid- to long-term prospects for this segment, which meets a significant quantity of the global disease burden.

“This investment, which comes shortly after we announced plans to acquire GSK’s global cephalosporin antibiotics, confirms our commitment to securing the future of our leading global business”.

Giovanni Barbella, Head of Sandoz Technical Operations, said: “Our goal is to produce and supply high-quality antibiotics at a cost-competitive price to patients around the world. The important investments announced today will enable our world-class manufacturing network in Europe to meet future requirements”.

Kat Jenkins