Sandoz CEO Richard Saynor has warned of a looming crisis in European antibiotic production, citing the recent decision by Roche to sell its antibiotic manufacturing facility in Kaiseraugst, Switzerland, as a “warning sign.” Saynor’s comments, made during a presentation of the company’s financial results, highlighted the growing pressure on antibiotic manufacturers due to low prices and increasing competition from Asia.
Sandoz, with its penicillin production facility in Kundl, Austria, is one of the last companies in Europe still manufacturing the essential antibiotic from scratch. According to Saynor, maintaining this capability is a responsibility the company takes seriously, but long-term viability depends on a “honest debate about pricing” to ensure continued supply in Europe. The company reported a $100 million loss, representing 1 percent of its revenue, in the past year due to the impact of low-cost imports.
The pressure on the European market is being exacerbated by a surge of discounted antibiotics from China, a consequence of U.S. Tariffs on Chinese products. Chinese manufacturers are redirecting their exports to Europe, flooding the market with key antibiotic ingredients, including penicillin, at significantly lower prices. This shift in trade flows directly impacts Sandoz, which also sells these base ingredients to other pharmaceutical companies.
While Europe grapples with these challenges, the U.S. Government is reportedly recognizing the urgency of the situation. A significant portion of antibiotics used by the U.S. Military are sourced from Asia, creating a vulnerability should supply lines be disrupted by geopolitical tensions. The U.S. Is exploring alternative suppliers, including those in Europe.
Sandoz is actively engaging with the U.S. Government, offering to supply penicillin ingredients from its Austrian facility to reduce the U.S. Military’s reliance on China and India. “We are having good conversations,” Saynor stated, without providing further details.
Beyond the challenges surrounding penicillin, Sandoz reported a strong financial performance for the year, with revenues of $11.08 billion, a 5 percent increase on a currency-adjusted basis. Generics accounted for the majority of revenue, while biosimilars – copies of biotechnologically manufactured drugs – experienced a 13 percent sales growth. Sandoz’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $2.4 billion, a 13 percent increase. The company anticipates continued revenue growth in the mid-to-high single-digit percentage range for the current year, along with a further one-percentage-point improvement in EBITDA margin.
In November 2025, Sandoz signed a global license agreement to commercialize a biosimilar version of pertuzumab, a drug marketed by Roche as Perjeta, according to a company statement.
