Sandoz, a Novartis company , is planning to invest $183 million (€150 million) in Kundl, Spain, Austria, and Palafolls to expand its antibiotic production network in Europe.
Sandoz is looking to restructure and reorganize its production facility to improve its ability to provide high-quality and low-cost medications around the world.
The most recent development is in line with the company’s plans which were unveiled in the July of last year as part of its collaboration with the Austrian government.
The company would first subsidize roughly $122 million (€100 million) to develop modern production technologies for the manufacturing of oral amoxicillin, an API (Active Pharmaceutical Ingredient) in its penicillin drug.
Sandoz stated in a statement: “This investment will allow Sandoz to leverage its position in Kundl as the hub and centre of the only major end-to-end antibiotics supply chain in Europe, covering all production steps from API to finished dosage forms for many leading antibiotics.”
Besides the Kundl manufacturing, the firm is planning to invest approximately $61 million (€50 million) in advanced manufacturing technologies in its Spain’s Palafolls plant.
Sandoz will expand its capability to enhance the production of sterile Penicillin APIs and sterile combination APIs, at its Palafolls facility.
As a part of its network modernization plan, Sandoz will stop producing oral APIs in Spain’s Les Franqueses facility, which is expected to close in 2024.
The organization stated that the production of sterile APIs will be moved to the palafolls unit from Kundl in 2025.
Sandoz CEO, Richard Saynor said: “Despite a temporary drop in demand due to the pandemic, we remain as confident as ever in the mid-to-long-term prospects for this segment, which meets a significant quantity of the global disease burden.
“This investment, which comes shortly after we announced plans to acquire GSK’s global cephalosporin antibiotics, confirms our commitment to securing the future of our leading global business.”
The government of Canada has granted $164 million to National Resilience Subsidiary Resilience for the up-gradation and development of its bio-manufacturing plant in Ontario.
The Strategic Innovation Fund (SIF) financing will help in boosting the vaccination and drug production, using innovative technologies like mRNA, which are widely utilized to combat Covid-19.