Sanofi, the French pharmaceutical company, plans to invest approximately 1.3 billion euros to 1.5 billion euros (equivalent to $1.4 billion to $1.6 billion) to upgrade its insulin production facility in Frankfurt, Germany. This site, located in Frankfurt’s Hoechst district, is renowned for manufacturing Sanofi’s insulin product, Lantus.
Sanofi’s decision to invest in enhancing its insulin production site in Frankfurt, Germany, comes after reevaluating plans to move Lantus production to France. This move is seen as a significant boost for Germany’s healthcare sector, which has been actively attracting investments. Earlier this year, Daiichi Sankyo also announced a major investment of around 1 billion euros in advancing its precision cancer drug research near Munich.
Ken Takeshite, global head of research and development at Daiichi Sankyo said, in a press release, “The establishment of our research institutes in Cambridge and Munich marks an important step to solidify our presence in the global drug discovery ecosystem.
“By enhancing our presence in these regions and utilising our strengths in science and technology, Daiichi Sankyo will continuously generate innovation through further collaborations with business partners and academia, contributing to the enrichment of quality of life around the world.”
In addition to Eli Lilly’s commitment of 2.3 billion euros last November to produce obesity and diabetes medications in Germany, Sanofi’s investment is anticipated to strengthen its manufacturing capabilities and underscore its dedication to maintaining a robust production footprint in the country.
Dr. Robert Habeck, who serves as the Vice Chancellor and Federal Minister for Economic Affairs and Climate Action, stated in Eli Lilly’s press release at the time, “The decision to locate here is good news for Germany as a business location. It creates new and future-oriented jobs, shows the confidence of companies in the attractiveness of Germany as a pharmaceutical and industrial location and helps to improve healthcare for our citizens.
“The new location will make an important contribution to industrial value creation in Germany with high-tech production facilities and research and development.”
According to Reuters, the upgrade is anticipated to strengthen the supply chain stability of Lantus and support Sanofi’s strategic objectives in the long term. In May, Sanofi announced an investment of over €1 billion to expand bioproduction capacity at its French sites located in Vitry-sur-Seine (Val de Marne), Le Trait (Seine-Maritime), and Lyon Gerland (Rhône).
Sanofi recently announced strong Q1 2024 results, highlighted by a 6.7% increase in sales driven largely by Duxipent, a medication used for asthma, atopic dermatitis, and nasal polyps. Sales of Duxipent surged by 24.9% to €2,835 million, with Sanofi projecting total sales for the drug in 2024 to reach approximately €13 billion. Vaccine sales also rose by 5.6%, primarily propelled by Beyfortus, while pharmaceutical launches saw a significant increase of 90.5%, supported by ALTUVIIIO and Nexviazyme, reaching €606 million.
Paul Hudson, the chief executive officer (CEO) of Sanofi said in a press release, “We are off to an excellent start in 2024, delivering on our strategic priorities and a transformation of our portfolio of medicines and vaccines to become a development-driven, tech-powered company committed to serving patients and accelerating growth.”