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 (NYSE: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).
- 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