Sandoz warns cheap Chinese imports threaten Europe’s antibiotic supply

Swiss generic drugmaker Sandoz has raised concerns about the impact of low-cost Chinese imports on Europe’s antibiotic supply chain, filing a draft anti-dumping complaint with the European Commission over Chinese imports of amoxicillin, a key antibiotic ingredient in the penicillin family. The company highlighted that China’s market-distorting practices—such as sustained below-cost pricing, state subsidies, and the concentration of global production capacity—pose a significant threat to Europe’s remaining antibiotic manufacturing capabilities.

Sandoz, which operates the only major vertically integrated production network for penicillins in Europe, warned that 90% of global antibiotic active ingredients are now produced outside the continent. This trend, according to Sandoz CEO Richard Saynor, risks eroding Europe’s ability to maintain independent antibiotic production, which is critical for both public health and economic security.

The issue is part of a broader debate about pharmaceutical supply chain resilience. In 2025, 11 EU health ministers issued an open letter warning that Europe’s reliance on Chinese pharmaceutical ingredients represents a critical vulnerability in its healthcare systems. A stress test of 56 essential active pharmaceutical ingredients revealed that more than one-third have high dependency on Chinese suppliers, with antibiotics being particularly at risk.

China’s dominance in the global antibiotic supply chain is well established. According to a 2024 study, China accounted for 44.5% of global antibiotic ingredient exports in 2021, making it the largest exporter in this category. The country’s competitive advantage is driven by decades of industrial policy, including state subsidies, tax incentives, and a protected domestic market that has allowed local firms to grow and compete globally.

The European Commission faces mounting pressure to address these dependencies. While the proposed Critical Medicines Act aims to strengthen pharmaceutical resilience, experts argue that more concrete measures are needed to preserve existing production capacity and diversify supply chains. Sandoz’s complaint underscores the urgency of these efforts, as the loss of European antibiotic manufacturing could have far-reaching consequences for healthcare systems across the continent.