Sanofi Nears Decision on $1.6B Upgrade For Frankfurt Insulin Plant

French drugmaker Sanofi is poised to commit between 1.3 billion euros and 1.5 billion euros ($1.4 billion – $1.6 billion) to enhancing its insulin production site in Frankfurt, Germany.

The site in Frankfurt’s Hoechst district is known for producing the company’s insulin brand, Lantus.

Also Read: Hawaii Court Rules Against Bristol Myers, Sanofi In Blood Clot Drug Case, Increases Liability To $916M.

This move comes after initial plans to shift Lantus production to France were reconsidered.

The decision to invest in the Frankfurt site represents a significant victory for Germany’s healthcare sector.

Germany’s ruling coalition has been actively working to attract healthcare investments. In February, Daiichi Sankyo announced plans to spend around 1 billion euros to advance its precision cancer drug work near Munich.

Eli Lilly LLY also committed 2.3 billion euros last November to produce obesity and diabetes medications in Germany.

Sanofi’s investment is expected to bolster its production capabilities and reinforce its commitment to maintaining a strong manufacturing presence in Germany.

Reuters noted that the upgrade will likely enhance Lantus’s supply chain stability and support Sanofi’s long-term strategic goals.

In May, Sanofi announced an investment of more than €1 billion to create new bioproduction capacity at its French sites in Vitry-sur-Seine (Val de Marne), Le Trait (Seine-Maritime), and Lyon Gerland (Rhône). 

Read Next:

• Sanofi Looks To Sell $20B Icy Hot Division: Likely Bidders Include Advent, PAI Partners, Blackstone, CVC.

Price Action: At the last check on Monday, SNY shares were up 1.96% at $49.47.

Image by HJBC via Shutterstock