Novartis’ generics division Sandoz has announced plans for a joint investment to strengthen the long-term future of integrated antibiotics manufacturing in Europe.
The collaboration between Sandoz and the Austrian federal government includes a combined investment of over €150m to drive the long-term competitiveness of European production of key antibiotics. That includes major innovative technology development, as well as the implementation of large-scale manufacture of active pharmaceutical ingredients (API) used in leading penicillin products.
As part of the joint plan, the Austrian government will contribute and coordinate public funding totalling approximately €50m towards the total investment, as part of its efforts to increase European-based production of these essential drugs.
The government funding will primarily support new process technology to produce API for penicillin in Kundl, Austria. In return, Sandoz is also planning to commit to related penicillin API production in Europe over the next ten years, despite increasing global price competition – in particular from China.
“This plan is a great example of government and the private sector working closely together to protect the long-term interests of patients in Europe and beyond,” said Richard Saynor, chief executive officer of Sandoz.
“Antibiotics are the backbone of modern medicine and our Kundl facility in Austria is the hub and centre of the last remaining integrated production chain for antibiotics in the western world. This joint investment will help to keep it that way,” he added.
Earlier this month, the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) raised nearly $1bn to support clinical research into new antibiotics in a bid to tackle growing antimicrobial resistance (AMR).
Antibiotic research and development has seen a renewed focus over the last few years, as antibiotic resistance rapidly becomes a significant threat to global health.
Although the Sandoz agreement does not include the development of next-generation antibiotic medicines, it does signal an acknowledgement of the importance of this class of drugs.
“Novartis is committed to sustaining a resilient and competitive supply chain for the essential medicines Sandoz markets,” said Steffen Lang, global head of Novartis Technical Operations (NTO).
“I am proud that NTO is leveraging its market-leading manufacturing expertise to enable Sandoz to further strengthen supply of these vital medicines, and we can build upon the high manufacturing and quality standards at the Kundl site and further deepen its vertical integration,” he added.