Sanofi to invest US$1.05b for insulin production base in China

French pharmaceutical giant Sanofi plans to invest around 1 billion euro (US$1.05 billion) to build a new insulin production base in Beijing, marking its largest single investment in China.

Sanofi said on Monday it had signed a memorandum of cooperation with the Beijing Bureau of Economy and Information Technology and the Administrative Committee of Beijing Economic-Technological Development Area to build the facility in the capital's southern area of Yizhuang. It did not reveal when the new site would be operational.

This will be Sanofi's fourth production-and-supply base in China and the second in Beijing, and it is expected to enhance the end-to-end supply chain capability for insulin to focus on local diabetes patients' demand.

Its two other production sites are located in Hangzhou and Shenzhen, respectively.

The new production capacity in Beijing aims to cater to the growing need for chronic disease medication in the future given the rising number of diabetes patients in China.

Sanofi Chief Executive Paul Hudson said the company would continue to deepen industry chain layout in China and upgrade innovative medical solutions to enhance the depth and breadth of its medical services available in China.

The new production base featured advanced automated production technologies, digital integrated management systems, and sustainable environmental standards, which would further enhance the company's supply-chain resilience and efficiently address the growing needs of diabetes patients, he added.