Sandoz opens new antibiotic production facility in Austria, to significantly increase capacity for life-saving medicines

MEDIA RELEASE

• EUR 50m investment in Kundl plant extension emphasizes commitment to serve more patients with critical antibiotics, produced entirely in Europe
• Additional manufacturing area of 3,000m² means Kundl can now manufacture 240 million packages per year
• Represents capacity increase of 20% over 2023 and more than doubling from 2021 output levels
• Automation and innovative technologies allow production of one billion more penicillin tablets and doubling of output for key pediatric formulation
• Latest investment follows commissioning of EUR 150m antibiotic active ingredient facility -- on stream since November 2023

Basel, March 21, 2024 – Sandoz, the global leader in generic and biosimilar medicines, today opened a new production facility in Kundl, Austria, to serve more patients with affordable life-saving drugs produced entirely in Europe.

The new facility and automated production lines will increase production capacity by 20% compared to the current capacity of 200 million packages per year. The expansion in finished dosage forms means that Kundl now has a production capacity of 240 million packages per year, more than a doubling from 2021 output levels.

Gilbert Ghostine, Chairman Sandoz, said: "Antibiotics are the backbone of modern medicine and Kundl is a testament to the resilience of European manufacturing. We are proud to further strengthen our manufacturing capabilities in Austria. This allows us to address growing demand and further strengthens our commitment to our unique European-based antibiotic production network."

With a manufacturing area of 3,000m², innovative technologies enable the production of one billion additional penicillin tablets and a doubling of the quantity of powder oral suspensions (POS), which are mainly used in pediatric medicines.

This project is another step in the Sandoz commitment to Austria as an integral part of its sustainable and high-quality European-based production network.

Sandoz has the only major remaining vertically integrated production network for penicillin in Europe. From active pharmaceutical ingredients (API) to finished dosage forms (FDF), Sandoz produces penicillin -- the leading category of antibiotics worldwide -- in Austria.

The opening of the new facility is part of a EUR 200 million investment into the site in Kundl, to significantly upgrade penicillin API manufacturing and increase output of finished products, in order to better serve patients in more than 100 countries worldwide.