By Pietro Lombardi

Novartis AG said Monday that its generics and biosimilars division Sandoz and the Austrian government are investing 150 million euros ($174.8 million) to support antibiotics manufacturing in Europe.

The deal, which should be closed by the end of the year, is expected to support the competitiveness of the company's site in the Austrian city of Kundl, Novartis said.

The agreement includes the development of innovative technologies and measures to guarantee the large-scale production of active ingredients for penicillin products.

"Our Kundl facility in Austria is the hub and center of the last remaining integrated production chain for antibiotics in the western world. This joint investment will help to keep it that way," Sandoz Chief Executive Richard Saynor said. 



  Write to Pietro Lombardi at pietro.lombardi@dowjones.com; @pietrolombard10