French drugmaker Sanofi ( SNY ) is poised to commit between 1.3 billion euros and 1.5 billion euros ($1.4 billion – $1.6 billion) to enhancing its insulin production site in Frankfurt, Germany.

The site in Frankfurt’s Hoechst district is known for producing the company’s insulin brand, Lantus.

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This move comes after initial plans to shift Lantus production to France were reconsidered.

The decision to invest in the Frankfurt site represents a significant victory for Germany’s healthcare sector.

Germany’s ruling coalition has been actively working to attract healthcare investments. In February, Daiichi Sankyo announced plans to spend around 1 billion euros to advance its precision cancer drug work near Munich.

Eli Lilly ( LLY ) also committed 2.3 billion euros last November to produce obesity and diabetes medications in Germany.

Sanofi’s investment is expected to bolster its production capabilities and reinforce its commitment to maintaining a strong manufacturing presence in Germany.

Reuters noted that the upgrade will likely enhance Lantus’s supply chain stability and support Sanofi’s long-term strategic goals.

In May, Sanofi ( SNY ) announced an investment of more than €1 billion to create new bioproduction capacity at its French sites in Vitry-sur-Seine (Val de Marne), Le Trait (Seine-Maritime), and Lyon Gerland (Rhône). 

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Price Action: At the last check on Monday, SNY shares were up 1.96% at $49.47.

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