BRIEF—Austria invests in local antibiotic manufacturing

Novartis’ generics business, Sandoz, is to undertake a joint investment with the Austrian government to boost antibiotics manufacturing in Europe.

The firm will invest over 150 million euros ($175 million) over the next five years, with the goal of upgrading facilities at Kundl, Austria.

The Austrian government will invest 50 million euros, mainly to support the manufacture of penicillin products. Sandoz said it would commit to European production of penicillin APIs for a decade, “despite fierce global price competition, particularly from China.”

Sandoz produces enough penicillin products at Kundl to potentially meet all European demand.