Sanofi (SNY.US) announced its largest single investment in China: a 1 billion euro investment to build a new insulin production base
1min read Sanofi (SNY.US) announced it will invest about 1 billion euros (US$11 billion) to build a new insulin production base in Beijing. It will be Sanofi's fourth production and supply base in China, and the largest single investment in the country.
The company said in a statement that the new base will enhance insulin production and manufacturing capabilities in China, focusing on meeting the insulin medication needs of local diabetes patients.
Sanofi is one of the world's largest insulin producers, and the insulin treatment market in China has huge potential. According to Sanofi's statement, more than 140 million Chinese adults have diabetes by the end of 2021, with an adult diabetes prevalence rate of about 11.9%, according to the company.
As Sanofi announced its investment plan, the Chinese government is trying to attract foreign companies to expand their businesses in China. Multinational pharmaceutical companies such as AstraZeneca (AZN.US) and Roche have adopted the "In China, For China" strategy to serve the growing Chinese pharmaceutical market. In the backdrop of geopolitical tensions threatening drug and vaccine production, the pharmaceutical industry's deals are an unusual bright spot between China and Western countries.
Sanofi recently opened a US$595 million vaccine production base in Singapore. On the French home turf, the company also pledged billions of euros to support health sovereignty.
Sanofi's Chairman Frédéric Oudéa and CEO Paul Hudson and other executives attended the contract signing ceremony in Beijing on Tuesday. The production base will be located in the Beijing Economic and Technological Development Zone.