By Zoila Palma: Europe’s only fully integrated penicillin manufacturing plant, located in Kundl, Austria, is facing an uncertain future as cheaper Chinese production intensifies competition in the pharmaceutical industry.
The facility, operated by Sandoz, produces penicillin from start to finish, including the active ingredients used in antibiotics that treat serious bacterial infections, Reuters report.
Sandoz says the plant is struggling to remain commercially viable as European governments prioritize lower medicine prices.
The company has asked the European Commission to investigate whether Chinese manufacturers are selling antibiotic ingredients below production cost, potentially with the support of government subsidies. The investigation could lead to trade measures against China. Sandoz has warned that the closure of the Kundl facility would leave Europe heavily dependent on foreign suppliers for essential antibiotics.
The dispute has raised wider concerns about Europe’s ability to secure essential medicines during future pandemics, conflicts or trade disputes.
Pharmaceutical experts warn that dependence on a small number of foreign suppliers could leave the region vulnerable to supply disruptions.
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