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.

Richard Saynor, CEO Sandoz, said: "Kundl, as the hub and center of our antibiotic production, is a true lighthouse project when it comes to security of antibiotic supply. This investment is our contribution to fighting shortages and increasing access for patients. To be successful in the future, we need to join forces across healthcare systems and build a sustainable market environment for generic medicines, focused on what is best for patients."

Disclaimer
This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sandoz undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.

About Sandoz
Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in generic and biosimilar medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 people of 100 nationalities work together to ensure 800 million patient treatments are provided by Sandoz, generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1500 products addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. Its history of breakthroughs includes Calcium Sandoz in 1929, the world’s first oral penicillin in 1951, and the first biosimilar in 2006. In 2023, Sandoz recorded sales of USD 9.6 billion.

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