Sandoz to Invest 50 Million Euros to Boost Europe's Manufacturing of Penicillin Products

Leading antibiotics manufacturer Sandoz has announced a 50 million Euros investment to expand Final Dosage Form (FDF) Penicillin production in Europe in order to strengthen the world's ability to supply Amoxicillin and other key Penicillin products. In the previous year, Sandoz declared it would devote €50 million to the manufacturing of sterile API products in Palafolls, Spain. Over 250 million Euros has been invested in Sandoz's network of antibiotics throughout Europe. 

The new manufacturing facility for antibiotics is a component of a 100 million Euros plan to finance new manufacturing technology in Kundl, Austria, for the production of oral Amoxicillin, a type of Penicillin Active Pharmaceutical Ingredients (APIs). The bulk formulation and fill-finish processes for Penicillin will be the main emphasis of the new building, which will be connected to the current production site.

Following the unheard-of market swings of recent years, Sandoz CEO Richard Saynor said: "we see significantly increasing demand for antibiotics, including Penicillin. This investment will assist the development of hundreds of new jobs, help to satisfy the increased demand from patients, and help to partially offset the effects of high energy prices by reducing unit costs. He continued, "Minimizing production costs of Penicillin drugs is crucial, particularly in light of Europe's rapidly rising energy prices. No matter how supply and demand change, producers must supply at set price levels. With Russia's war in Ukraine and the global energy crisis combined in a perfect storm, the fear of an impending and severe recession is spreading a shadowy pall over the entire market of Europe.

We urgently need to alter the operating framework and implement fundamental ideas like inflation-linked pricing and tenders with non-price criteria.

According to the Sandoz Global Operations Head, "This new building, which will be ready for operation by early 2024, will significantly improve the security of supply for essential Penicillin medications.