Sandoz, the generics and biosimilars arm of Novartis, has announced a joint investment with the Austrian federal government for antibiotics manufacturing in Europe.

Sandoz intends to invest more than EUR 150 million ($178 million) over the next five years in its antibiotic manufacturing operations for both active pharmaceutical ingredients (APIs) and finished dosage forms at its facility in Kundl, Austria. 

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 ($59 million) toward 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 (2020).

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 10 years.

Sandoz says it produces enough penicillin products at Kundl to potentially meet all current Europe-wide demand. Kundl is the Sandoz’s center for antibiotic finished dosage forms and the focal point of its European antibiotics manufacturing network.

Source: Novartis