Sanofi announced its largest-ever investment in China, committing €1 billion ($1.04 billion) to establish a new insulin production facility in the Beijing Economic and Technological Development Zone. This strategic manufacturing expansion represents a calculated response to China’s growing diabetes crisis, with recent data indicating 140 million adults living with diabetes as of 2021. The new facility, set to become Sanofi’s fourth manufacturing site in China, complements existing operations in Beijing, Shenzhen, and Hangzhou.
The investment comes amidst trade tensions between China and the European Union, with China actively seeking to improve economic ties with individual EU members, as Reuters noted. Chinese Commerce Minister Wang Wentao reassured Sanofi’s chairman, promising equal support for all businesses in technological innovation and market competition, while emphasizing China’s commitment to fostering a stable business environment.
Meanwhile, Bloomberg Canada reported that Johnson & Johnson and Merck & Co. are reducing their workforces in China due to increased competition from domestic rivals and Beijing’s efforts to lower healthcare expenses. The layoffs, impacting J&J’s surgery division and Merck’s diabetes unit, are partially a result of China’s volume-based procurement (VBP) program, which favors cheaper local suppliers for hospital contracts.
In September, Sanofi and Regeneron announced that Dupixent has been approved in China as the first biologic medicine for adults with uncontrolled chronic obstructive pulmonary disease (COPD) characterized by raised blood eosinophils. This approval, based on positive results from two phase 3 studies demonstrating significant reductions in exacerbations, improved lung function, and enhanced health-related quality of life, marks a significant advancement in COPD treatment in China, where the disease is highly prevalent. Dupixent, which inhibits the signaling of IL-4 and IL-13 pathways, has already been approved in over 30 countries for COPD and is also approved in China for other respiratory and dermatological conditions.
In a brochure, Sanofi notes that it has operational infrastructure across the globe, including 59 manufacturing sites and 20 R&D facilities, with its medicines and vaccines reaching 180 countries.
Filed Under: Metabolic disease/endicrinology
