EU Antibiotic Security at Risk, Warns Sandoz.

Swiss-based pharmaceutical company Sandoz has raised serious concerns over the growing import of low-cost antibiotics from China, warning that it could threaten Europe’s healthcare security and industrial stability.

Complaint Filed to European Commission

Sandoz has submitted a draft complaint to the European Commission targeting imports of penicillin-based antibiotics, particularly the active ingredient used in amoxicillin. The company argues that heavily subsidized Chinese production is distorting global competition.

Concerns Over Market Dependency

According to Sandoz CEO Richard Saynor, up to 90% of global antibiotic active substances are now produced outside Europe, mainly in China. He warned that this creates a critical strategic vulnerability for public health systems and crisis preparedness across Europe.

Pricing and Industry Pressure

Sandoz claims that antibiotics are being systematically undervalued in global markets, with pricing structures failing to reflect their importance in healthcare systems. The company argues that this focus on low-cost supply is weakening long-term production sustainability.

Risk to European Production Capacity

The company is actively trying to maintain Europe’s last remaining major antibiotic production facility in Kundl, Austria, which marks its 80th anniversary this year. Industry leaders warn that without stronger protections, Europe risks losing domestic production capability entirely.

Policy Response in Europe

Some progress has been made through initiatives such as the “Alpbach Communiqué,” which proposes that at least 30% of essential medicine supplies should come from European producers.

The EU’s proposed Critical Medicines Act is also seen as a step forward, although implementation details remain uncertain.

Global Comparison and Policy Debate

Sandoz has pointed to India’s policy model, where minimum import pricing is used to protect domestic pharmaceutical production. The company argues that Europe may need similar measures to secure long-term supply stability.

Conclusion

The dispute highlights growing global tensions over pharmaceutical supply chains, pricing fairness, and strategic independence in essential medicines, particularly antibiotics.

Switzerland Ranks 3rd Globally in R&D Intensity

Switzerland continues to strengthen its position as a global innovation hub, with major companies ranking among the world’s top investors in research and development (R&D), according to a new EY study published on Tuesday.

The analysis of the world’s 500 largest corporate R&D spenders shows that Swiss firms achieved the third-highest research intensity globally in 2025, measured by the ratio of R&D spending to revenue. Only companies in the United States and the Netherlands ranked higher.

Swiss corporations recorded an average R&D intensity of 8.4%, significantly above the European average of 6.7%, although still below the United States, which leads with 9.2%.

In total, Swiss companies invested approximately €34 billion (CHF 31.2 billion) in innovation last year, placing Switzerland sixth worldwide in total R&D expenditure.

The study highlights the strong contribution of Basel-based pharmaceutical giants. Roche remains one of the world’s leading investors in innovation, spending €14.3 billion on R&D. Novartis also plays a key role, investing €9.9 billion and ranking among the top global companies.

According to EY analysts, medicines continue to be the most research-intensive industry worldwide, reflecting the importance of pharmaceutical innovation in Switzerland’s economy.

However, the report also highlights a growing gap between Europe and the United States. While American companies increased R&D spending by 12% in 2025, European firms saw only a 5% increase, with relatively stagnant revenue growth.

At the global level, technology giants dominate absolute R&D spending. Companies such as Amazon, Alphabet (Google), and Meta (Facebook) lead the rankings, with Amazon alone investing more than €96 billion, largely driven by artificial intelligence development.

EY concludes that global companies are prioritising innovation more than ever, with R&D budgets growing faster than overall revenues. This trend reinforces the importance of research investment in maintaining long-term competitiveness.