Novartis to uphold generic drug supply despite surging energy costs

[October 25, 2022]  FRANKFURT (Reuters) - Novartis said its generic drugs division Sandoz would continue to provide medicines to all of its European markets because a surge in energy costs can be offset by efficiency measures.

"We feel confident we can maintain supply of our generics to European markets and markets around the world and we believe we have built adequate contingency plans for energy to ensure our plants are adequately supplied and similarly are able to offset inflation through productivity measures," Chief Executive Vas Narasimhan told journalists in a call after the release of third-quarter results.

"I could imagine that more broadly in the generic sector this could be very challenging," he added.

Swiss drugmaker Novartis' logo is seen at the company's plant in the northern Swiss town of Stein, Switzerland October 23, 2017. REUTERS/Arnd Wiegmann/File Photo

The generic drugmakers' association in Europe last month warned that production of some medicines may have to be stopped because health systems are not raising reimbursement prices even as energy costs surge.

(Reporting by Ludwig Burger, editing by Rachel More)

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