Sandoz brings the issue of Chinese dumping to Brussels and asks the European Commission to open an investigation into imports of a key ingredient of the most widely used antibiotics in Europe, claiming that artificially suppressed prices and state subsidies are already reshaping the pharmaceutical market balance and putting supply security on the continent under pressure.
SANDOZ’S REQUEST TO THE EUROPEAN COMMISSION
The generic drug manufacturer Sandoz, reports the Financial Times, has asked the European Commission to launch an investigation into imports from China related to a key ingredient in the antibiotic industry, alleging the existence of distorting public subsidies. The request focuses on possible unfair competition practices which, according to the company, would require the introduction of corrective measures to protect the European sector and supply resilience.
THE CASE OF AMOXICILLIN TRIHYDRATE
At the center of the complaint is amoxicillin trihydrate, the active ingredient used in the production of the most widely used antibiotic in Europe. Sandoz, the world’s largest generic drug manufacturer, claims that Chinese imports of this ingredient reflect a “significant state intervention” and “non-market pricing.”
PRICES AND SUBSIDIES
In the document viewed by the FT, Sandoz states that Chinese imports of amoxicillin trihydrate enter the market at prices approximately 47% lower than European prices, creating difficult conditions for production within the Union. The company links this differential to a subsidy system that would favor the influx of so-called “ultra-cheap” products, with direct effects on the competitiveness of European producers and the structure of the antibiotic market.
RISK OF EUROPEAN DEPENDENCE
According to Sandoz, the absence of corrective interventions could lead to a structural dependence of the European Union on China for the antibiotic considered among the most essential. In the complaint, the company states that “if corrective measures are not adopted, the EU risks becoming structurally dependent on China for its most essential antibiotic, with clear implications for supply security and patient access.”
The Swiss group estimates that about 80% of the active ingredients of amoxicillin are imported from the Asian continent, according to data provided by the healthcare provider IQVIA. The concentration of production outside Europe is indicated as a factor that strengthens the pharmaceutical supply chain’s dependence on external suppliers, particularly Asian ones.
TIMING AND ANTIDUMPING PROCEDURE
Sandoz, a company listed in Zurich and spun off from Novartis in 2023, stated that the European Commission has not yet responded to the request. The company acknowledges that a full antidumping investigation could take up to a year but asks that the procedure be treated as a priority and accompanied by immediate market protection measures.
AN ALREADY COMPLEX SITUATION
The issue of Chinese overcapacity, the FT emphasizes, fits into a broader debate involving several European industrial sectors. Belgian Prime Minister Bart De Wever, in a letter addressed to European Commission President Ursula von der Leyen in March, highlighted how the EU’s trade deficit with China reached 360 billion euros last year, calling for the protection of strategic sectors such as pharmaceuticals, chemicals, and energy transition.
In the same communication, De Wever described China’s transformation as a shift from “partner and competitor to systemic rival through state-driven overcapacity, technological upgrading, and strategic control of critical resources.”
THE CHINESE REACTION
The Chinese Ministry of Foreign Affairs previously rejected the overcapacity accusations, calling them a “departure from objective facts,” adding that “protectionism cannot strengthen competitiveness and blaming others does not solve one’s own problems.”
THE INDIA MODEL
Sandoz also pointed to the antidumping directive introduced in India earlier this year as a possible regulatory reference. The measure includes provisions such as minimum import prices for the amoxicillin drug family, considered by the company as an example of regulatory intervention that Europe could consider within its own trade and industrial policy framework.
