The latest ingredients’ antibiotic manufacturer of ingredients closes the largest domestic factory

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The latest ingredients in Europe for some vital antibiotics closes its largest domestic factory and changes some production in China, treating Brussels efforts to reduce Asian drug dependence.

The loss Xellia Pharmaceuticals said that he could only survive against Chinese competition by moving part of his production to his plant.

Half of Xellia’s active pharmaceutical ingredients (API) in the recent EU Critical Medication List and the list of essential medicines of the World Health Organization.

The Danish company told the staff on Tuesday that it would close its Copenhagen plant, with a loss of 500 jobs. For now, it will retain a more profitable European operation in Budapest.

Its CEO, Michael Kocher, said that unless government -funded health systems were ready to pay more for generic medicines, more companies based in the Mulch I would move the factories.

“We are discussing a lot about the turn to return.

Xellia’s medicine ingredients include vancomycin chlorhydrate, which is needed to produce antibiotics that can treat severe infections such as sepsis, resistant to other drugs.

About 80 percent of the APIs used in the EU already come from China. With tensioned health systems that did not want to increase medicine prices, Kocher suggested that subsidies were the only way to ensure that the EU retained some control over such important ingredients.

“Otherwise, not only 80 percent of the APIs will come from China. It will be about 100 percent very soon,” he said.

Western Vancomycin’s Western Demand could still be satisfied with Budapest if they improve market conditions, Kocher emphasized.

The European Commission presented in March proposals that could be included in a critical medicine law to try to address the units exposed by Covid-19 Pandemic, when countries were hosted by medicines, protective clothing and equipment such as fans.

These proposals aim to increase EU production of more than 200 medicines, from antibiotics such as penicillin and erythromycin, to painkillers such as lidocaine and morphine.

The measures commented include allowing countries to join for bulk purchases and promote EU-made products in the contracting processes. But Kocher said that the policies were too shy and took too long to implement.

“Costs increase, try to transfer these costs to your customer and your customers decide that the costs are too high and increase China’s quota,” he said. “We are looking for … a commitment to support the ongoing operations.”

Intensive pharmaceutical companies in research have also warned that low prices paid by European health systems are promoting new medicine discovery efforts in the United States and China.

The main executives of Novartis and Sanofi wrote to the commission last month Call at higher prices. They also said that the North -American rates asked companies to invest in North America. However, Xellia said he did not plan to do the same.

Xellia, owned by Novo Holdings, the control shareholder of the Danish pharmaceutical plant Novo Nordisk*, sells more than 500 companies from 80 countries. It will take a decade to slowly transfer the production of its Copenhagen factory elsewhere.

Kocher said that the EU should put more value in their “life -saving” products that deal with meningitis and other lethal conditions. “Without our product portfolio, we would find a great challenge. Covid would be a small problem compared,” he said.

)This item has been updated to clarify the property of Xellia Pharmaceuticals.