Sandoz CEO: Europe's Antibiotics Depend on China, and That Is a Risk

China supplied 86% of EU imports of penicillins and their derivatives last year, up from 44% in 2019, according to Eurostat. That single figure sits at the center of a fight over who makes the world's oldest life-saving medicines.

Sandoz, the Swiss generics maker ranked 369th on the Fortune 500 Europe, runs the continent's only fully integrated antibiotic plant. Its €150 million ($168 million) facility in Kundl, Austria, produces active ingredients and turns them into finished medication. CEO Richard Saynor says no other Western company still does this at scale.

"We're now the last remaining penicillin manufacturer left in the Western world," Saynor 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."

Why does the price of a Mars bar matter here?

Saynor's sharpest comparison involves a candy bar. The U.K.'s National Health Service pays £1.06 ($1.41) for a 21-pack of 250mg amoxicillin capsules, according to the British National Formulary.

"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."

The stakes are historical. Before Alexander Fleming discovered penicillin 100 years ago, infections caused almost half of all deaths. Modern antibiotics have since added an average of 23 years to human life expectancy and save millions of lives each year.

Saynor argues the comparison with consumer goods cuts both ways. "It's not a fair comparator to say all drugs should be sold at the same price as a Mars bar when it costs $100 billion to develop and then bring products to the marketplace," he says.

What is Sandoz asking regulators to do?

In May, Sandoz filed a complaint with the European Commission requesting an anti-dumping probe into Chinese imports of the active ingredient used in amoxicillin. The company accuses Chinese manufacturers of "market-distorting behavior" and says they "flood" global markets with ultra-cheap pharmaceutical ingredients.

"We're competing with heavily subsidized Asian players," Saynor says. "We want a level playing field."

The company has also warned U.K. lawmakers in written evidence that Europe's dependence on China is an "Achilles heel" for public health and defense. Supply restrictions, Sandoz argued, could become a "tool of economic coercion or hybrid warfare" during diplomatic tension.

Brussels has started to move. The EU's Critical Medicines Act, provisionally approved in May, aims to improve the availability and production of key medicines such as antibiotics and painkillers across Europe. Saynor calls it a step in the right direction — with one caveat.

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

Where does Sandoz see growth?

The penicillin fight is one front in a broader expansion. Sandoz specializes in generics and biosimilars — off-patent drugs with the same clinical effect as branded versions but far lower prices. Generic drugs make up 80% of all medicines used globally.

The company estimates that patents on medicines worth a combined $650 billion will expire within 10 years. Saynor calls it an "unprecedented golden decade" for the biosimilars market.

Last month, Sandoz set a target of producing more than 100 biosimilar products by 2040, almost eight times its current total of 13. It estimates these launches could create almost $1 trillion in social impact, partly through direct savings for healthcare systems. To support the plan, Sandoz has invested $300 billion in a new drug substance facility in Ljubljana, Slovenia.

The 2023 spin-out from Novartis positioned the company for this shift, Saynor argues. "Our job is to challenge patents and bring products to market as early as possible," he says, contrasting that with Novartis-style patent defense. "Intellectually, those are very different things."

Independence also gave him a political platform. "I've had access to the White House, to the European regulators, to European governments, international governments all over," Saynor says. "I couldn't have said half of the things that I've said as part of our parent company. It's allowed us to shape policy."

Saynor has meanwhile rebuilt his leadership team with outsiders. In July, Pascal Bouye, formerly of Mars and Danone operations roles, became president of generics and manufacturing supply. Keren Haruvi moved from Novartis to lead North America, and Remco Steenbergen, Lufthansa's former CFO, joined in 2024. Steenbergen brought knowledge of asset-heavy, thin-margin finance; Bouye brought consumer-goods supply chain experience.

"I don't have all the answers as CEO," Saynor says. "We need different points of view to challenge our thinking and people who can bring knowledge from different industries — not necessarily just a pharma viewpoint."

The Commission's decision on the anti-dumping probe will show whether Brussels backs that argument with enforcement, or leaves Europe's last penicillin line to compete alone.