Sanofi invests US$1.4B in new insulin manufacturing plant

FRANCE—Sanofi, the French pharmaceutical giant, has announced a US$1.4 billion (1.3 billion euros) investment to develop a new insulin manufacturing plant on its Frankfurt, Germany campus.

This new 36,000-square-foot plant will be operational by 2029, replacing the current insulin production sites.

The Frankfurt-Höchst site, already one of Sanofi’s largest plants, employs approximately 6,600 people, of whom around 4,000 are directly or indirectly involved in insulin production.

The Höchst site is also notable for producing the diabetes drug Lantus, a key product for Sanofi that has achieved annual sales in the billions.

This substantial investment in insulin production is particularly significant given the current trends in the industry.

While other companies, such as Novo Nordisk and Lilly, are increasingly focusing on GLP-1 medications like Mounjaro and Ozempic, Sanofi remains committed to insulin.

Novo Nordisk’s decision to discontinue the basal insulin Levemir has left some patients concerned that the focus on more lucrative weight-loss drugs could leave them behind.

Commenting on the new investment, Brendan O’Callaghan, Sanofi’s head of global manufacturing and supply, emphasized the company’s dedication to producing essential medicines for the increasing number of people with diabetes worldwide.

 “We’re leveraging the extensive expertise of our Frankfurt BioCampus and its highly qualified personnel,” O’Callaghan noted.

He also highlighted Sanofi’s long-standing history of developing strategic platforms to ensure the supply of critical medicines and vaccines for both present and future needs.

Similarly, Heidrun Irschik-Hadjieff, CEO of Sanofi in Germany, remarked that this planned investment underscores the Frankfurt BioCampus’ pivotal role in boosting the resilience of global insulin production.

This investment follows the German government’s adoption of an official pharma strategy in 2023 to enhance support for pharmaceutical companies.

Sanofi has also indicated that the project will be carried out with the backing of both the German national government and the Hesse state government, pending approval from the European Union.

Additionally, Sanofi plans to invest over €1 billion (US$1.09 billion) to increase its production capacity at three sites in France, further emphasizing its commitment to strengthening its manufacturing capabilities across Europe.

Earlier this year, the company announced a US$1.1 billion investment to expand its production capacity in France, focusing on biologic medicines.