Sandoz CEO says 86% of European penicillin imports now come from China
Sandoz, the Swiss pharmaceuticals company, runs Europe's only fully integrated antibiotic plant.
The short version
- Richard Saynor, the CEO of Sandoz, warns that the Western world is losing penicillin production.
- Cheap Chinese imports now dominate the market with 86% of European supplies.
Alexander Fleming discovered penicillin 100 years ago, adding 23 years to human life expectancy. Today, Sandoz, the Swiss pharmaceuticals company, stands as one of the last major producers of this vital medicine in Europe. Its €150 million factory in Kundl, Austria, is the continent’s only fully integrated antibiotic manufacturing facility.
But the company faces intense pressure from overseas competitors. Last year, 86% of European Union imports of penicillins and their derivatives came from China, up from 44% in 2019, according to Eurostat. Richard Saynor, the CEO of Sandoz, warns that losing local production threatens public health and defense.
"We’re now the last remaining penicillin manufacturer left in the Western world," he says, according to Fortune. Sandoz filed a complaint with the European Commission requesting an anti-dumping probe into Chinese imports of the active ingredient used in amoxicillin. The U.K.’s National Health Service currently pays £1.06 for a 21-pack of 250mg amoxicillin capsules.
Saynor points out the irony in the pricing. "Why should we sell a pack of antibiotics more cheaply than a Mars bar?" he asks. While governments welcome new healthcare acts, Saynor notes that paying a sustainable price for life-saving medicine remains a challenge when budgets get tight.
