Sandoz warns cheap Chinese imports threaten Europe’s antibiotic supply

{"text":[[{"start":7.8,"text":"The chief executive of Switzerland-based Sandoz, one of the world’s largest generic drug manufacturers, called on the EU to do more to prevent the industry from being hollowed out by cheap Chinese imports, saying it was “ridiculous” that antibiotics cost less than chewing gum."}],[{"start":24.55,"text":"Richard Saynor said European antibiotics manufacturers were “giving up” in the face of dumping by Chinese groups backed by state subsidies, warning that without intervention Europe risked becoming dependent on overseas imports."}],[{"start":38.9,"text":"“I find it offensive that we sell a pack of antibiotics in the UK more cheaply than a pack of chewing gum. It’s ridiculous,” Saynor told the FT in an interview, noting how US efforts to cut drug prices underlined the need for a strong domestic manufacturing base."}],[{"start":55.4,"text":"“I’m not asking to charge hundreds of dollars but I don’t think £10 or that ballpark is unreasonable to protect a critical asset that, if you don’t have, there are no [medical] operations, dental or [treatment of] basic infections. This is the foundation of healthcare.”"}],[{"start":68.7,"text":"Antibiotics are essential for surgery and other medical procedures, with tens of billions of doses consumed globally each year. A 21-pack of 250mg amoxicillin, the most widely used antibiotic in Europe, costs the UK’s National Health Service £0.97, according to the British National Formulary, the reference guide on medicines."}],[{"start":90.4,"text":"The FT reported this month that Basel-based Sandoz had filed a complaint with the European Commission that urged the bloc to open a probe into Chinese imports of the active ingredient used in amoxicillin, alleging unfair subsidies that distorted the competitiveness of the industry. "}],[{"start":107.2,"text":"The complaint filed in March alleged “significant state intervention” and “non-market pricing” and called for additional taxes on imports from China to prevent dumping."}],[{"start":116.65,"text":"Sandoz, spun out of Swiss pharmaceuticals group Novartis in 2023, joined the list of companies to complain about Chinese oversupply in sectors from wind turbines to chemicals."}],[{"start":127.9,"text":"“The conversation we’re having with [European] governments is that this is clearly not sustainable,” Saynor said of Chinese practices. “We’ve been making antibiotics for 80 years and we’d like it to be here for the next 80 years. But they [European countries] have the responsibility to protect [the industry].”"}],[{"start":146.1,"text":"China’s foreign ministry has dismissed dumping claims as a “departure from the objective facts”, adding that “protectionism cannot enhance competitiveness and blaming others cannot solve one’s own problems”."}],[{"start":null,"text":"

"}],[{"start":158.54999999999998,"text":"Antibiotics have been a tough industry for European manufacturers in recent years. Roche said in February that it was seeking a buyer for one of its key antibiotic products, alongside plans to close the plant in Switzerland where it is manufactured. Xellia Pharmaceuticals, a major European manufacturer of antibiotic active ingredients, closed its Copenhagen plant last year in favour of moving some production to China."}],[{"start":182.79999999999998,"text":"Sandoz produces more than 1,000 off-patent medicines ranging from antibiotics to over-the-counter treatments and biosimilars made from living cells. The Zurich-listed company’s revenues topped $11bn last year."}],[{"start":197.99999999999997,"text":"Saynor said the company was the last remaining “vertically integrated” manufacturer of antibiotics in the west, meaning everything in the process was manufactured in-house."}],[{"start":207.99999999999997,"text":"About 80 per cent of all medicines used globally are off-patent drugs and health systems would collapse without them."}],[{"start":215.99999999999997,"text":"Saynor said he was encouraged by the EU’s Critical Medicines Act that aimed to tackle shortages of key medicines. EU states have faced shortages of products such as antibiotics, insulin and painkillers in recent years. The EU Council and parliament reached a provisional agreement on the act this month."}],[{"start":234.29999999999998,"text":"“If we believe the headlines, then European governments will be required to procure a significant proportion of their [medicine] requirements from integrated manufacturers in Europe,” Saynor said of the act. But he added that much more needed to be done."}],[{"start":248.89999999999998,"text":"“We’re having conversations but I need to see more action. There’s more action from the Rwandan government than . . . European governments. But it’s starting,” he said."}],[{"start":264.7,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780212919_8839.mp3"}