As Chinas pharmaceutical industry grows rapidly, the prices of many commonly used medications continue to decline, thereby reducing the medical costs for people in many countries. However, some European companies are upset by this situation and have begun complaining about too low drug prices, demanding that the EU take trade protection measures.
According to a report by the British Financial Times on May 31, Richard Seno, CEO of Swiss generic drug company Sandoz, called on the European Union to take measures against Chinese pharmaceutical companies, in order to prevent cheap Chinese drugs from disrupting Europes pharmaceutical industry. He said that the prices of antibiotics are even cheaper than gum, which he considered disgusting. He demanded that the EU protect Europes domestic industries.
In 2023, Sanofi was split off from Swiss company Novartis, becoming a separate publicly listed company. It is one of the worlds largest manufacturers of generic drugs. The company produces over 1,000 non-patent drugs, including antibiotics, over-the-counter medications, and biologics made from living cells. Last year, its revenue exceeded $11 billion.
In March this year, Sandecker filed a complaint with the European Commission, requesting an investigation into the raw materials of amoxicillin imported from China. The complaint also urged the EU to impose additional tariffs on antibiotic drugs imported from China in order to prevent dumping.
In an interview with the Financial Times, Seno said that European antibiotic manufacturers are unable to compete with Chinese cheap drugs. If the EU does not intervene, Europe will face the risk of relying on imported products from abroad.
Seano said, In the UK, the price of a box of antibiotics is even cheaper than that of a box of chewing gum. This is absurd and makes me angry. Im not asking for hundreds of dollars in fees. But I think charging around 10 pounds isnt too much. After all, its crucial to protect a key asset. Without this asset, various medical procedures cannot be carried out. This is the foundation of healthcare.
Antibiotics are essential for surgeries and other medical procedures. Globally, billions of doses of antibiotics are consumed each year. Data from the UK National Prescription List shows that a box of 21 tablets of amoxicillin, each weighing 250 milligrams, costs £0.97 in the UKs National Health Service.
However, in recent years, European antibiotic manufacturers have been facing significant challenges. Roche Pharmaceuticals of Switzerland announced in February that it is seeking a buyer for one of its key antibiotic products, and plans to close a factory in Switzerland. Axepharm, a major European manufacturer of antibiotics raw materials, has closed its factory in Copenhagen, Denmark, and has transferred some of its production to China.
China has become the worlds leading producer of antibiotics. According to estimates by the Massachusetts Institute of Technologys Economic Complexity Observatory (OEC), by 2025, Chinas antibiotic exports will reach $4.35 billion, accounting for approximately 45.5% of global exports.
Seno said that Sanders has become the last vertical integrated antibiotic producer in Europe, meaning that all stages of production are carried out within the company itself.
Shandess Oral Penicillin Production Line – Shandess Company Website
Seano told the Financial Times that the EUs Key Medicines Act aimed at addressing key drug shortages was very inspiring for him. If the reports are true, European governments will be required to purchase a significant portion of these drugs from local manufacturers in Europe. However, he added that he believes Europe needs to take further actions.
In recent years, the EU has frequently used the pretext of reviving the industry to implement trade protection measures against China in various sectors such as steel and automobiles. The Chinese side has repeatedly rejected such measures and statements from the EU.
The spokesperson for the Ministry of Commerce, He Yadong, previously stated that China urges the European side to face reality and return to the correct path of dialogue and consultation. It is important to do things that truly benefit the development of Sino-European economic and trade relations. If the European side continues to push for the introduction of so-called new measures and imposes discriminatory restrictions on Chinese enterprises or products, China will take resolute countermeasures.
