BERLIN (Reuters) – French drugmaker Sanofi (NASDAQ:SNY) is close to reaching a resolution to invest between 1. 3 billion and 1. 5 billion euros ($1. 4 billion to $1. 6 billion) to modernize its production of long-acting insulin in Germany, an expert said. plan told Reuters on Monday.
The expected investment would be the latest in a series of recent victories by Germany’s ruling coalition to attract foreign investment in the pharmaceutical sector.
German newspaper Handelsblatt, which first reported on the investment plan on Monday, quoted German government sources as saying Sanofi had changed course after first contemplating moving production of its Lantus insulin logo to France, and was now about to embark on a modernization of its German site in Germany. The Hoechst district of Frankfurt.
Sanofi’s imaginable expansion in Germany comes as France’s far-right National Rally party won primary victories in the first round of parliamentary elections, fueling uncertainty about what an imaginable shift in political strength could mean for businesses, even though the source did not mention political points as imaginable influences and has given no explanation for why favoring Germany.
The company said it would not comment on urgent investment plans. A German government spokesman said Chancellor Olaf Scholz was “very interested” in learning more about it, but that it was up to the company to provide an update.
Among the recent victories of Germany’s ruling coalition to attract investments in physical care, Daiichi Sankyo announced in February that it would spend about a billion euros on its precision cancer drug paintings near Munich.
U. S. drugmaker Eli Lilly (NYSE:LLY) pledged in November last year to invest €2. 3 billion to fight obesity and diabetes in Germany.
Meanwhile, the world’s other largest insulin maker, Novo Nordisk (NYSE:NVO), has recently shown symptoms of prioritizing manufacturing its hit obesity drug, Wegovy, and its diabetes drug Ozempic, which comprises the same active ingredient, as insulin production.
In November, for example, Novo announced that it would discontinue one of its insulins, Levemir, raising production limitations, among other issues.
Scholz’s coalition government, whose three constituent parties suffered heavy losses in last month’s European elections, is keen to spice up its economic credibility ahead of next year’s general election.
Europe’s largest economy is expected to return to an expansion of 0. 3% to 0. 4% this year, after a contraction of 0. 3% in 2023, the weakest functionality among the major eurozone countries.
But foreign companies last year saw record levels of new investment in Germany despite the recession and high energy prices, according to a report published in May.