‘Why do we value a Mars bar more than life-saving medicine?’ Sandoz CEO calls for level playing field with cheap Chinese antibiotics

Prior to Alexander Fleming’s accidental discovery of penicillin 100 years ago, almost half of all deaths were caused by infections. Fleming’s petri-dish experiments and the resulting development of modern antibiotics have added an average of 23 years to human life expectancy and are estimated to save millions of lives each year.

Sandoz, the Swiss pharmaceuticals company, is one of the last producers of this vital medicine in Europe. Its €150 million ($168 million) factory in the Alpine town of Kundl, Austria, is the continent’s only fully integrated antibiotic manufacturing facility, capable of producing the active ingredients and turning it into medication ready for patients.

However, Sandoz faces strong competition from China. Last year, 86% of EU imports of penicillins and their derivatives came from China, up from 44% in 2019, according to Eurostat. China is now the largest exporter of antibiotic ingredients in the world.

Losing the ability to produce antibiotics in Europe raises questions about security and sovereignty, according to Richard Saynor, the CEO of Sandoz. “We’re now the last remaining penicillin manufacturer left in the Western world,” he says. “Do you really want to be in a world where all of your antibiotics come from Asian suppliers? I don’t think you do.”

In written evidence to U.K. lawmakers, Sandoz warned that Europe’s dependence on China for antibiotics represented an “Achilles heel” for its public health and defense, adding that the restriction of supply could become a “tool of economic coercion or hybrid warfare” during times of diplomatic tension.

Sandoz has also claimed that “market-distorting behavior” has helped Chinese manufacturers to undercut their competitors and “flood” global markets with ultra-cheap pharmaceutical ingredients.

The company filed a complaint to the European Commission in May requesting an anti-dumping probe into Chinese imports of the active ingredient used in the antibiotic amoxicillin. “We’re competing with heavily subsidized Asian players,” Saynor says. “We want a level playing field.”

The EU’s Critical Medicines Act, which was provisionally approved in May and aims to improve the availability and production of key medicines such as antibiotics and painkillers across Europe, is a step in the right direction, according to Saynor.

However, he adds: “What’s not clear is how that then translates into European governments paying a little bit more for these drugs. As always, everyone agrees with you, but the moment you ask for the check, everyone has suddenly left the table.”

The U.K.’s National Health Service currently pays £1.06 ($1.41) for a 21-pack of 250mg Amoxicillin capsules, according to the British National Formulary , a reference book which provides guidance on the prescribing and administration of drugs for healthcare professionals. “Why should we sell a pack of antibiotics more cheaply than a Mars bar?” Saynor asks. “Do we value a Mars bar more than the medicine that has saved more lives than any other invention? Governments are very good at seeing the price, but they don’t necessarily see the value.”