Sanofi will invest approximately 1 billion euros (approximately 1.1 billion US dollars) to build a new insulin production base in Peking. This is its largest single investment in China to date and part of its broader strategy to expand production capacity in Asia.
The French pharmaceutical company announced on WeChat that this will be Sanofi's fourth production base in China, and the second one in Peking, focusing on serving the medication needs of local diabetic patients.
Sanofi is one of the world's largest insulin manufacturers, with tremendous potential in the Chinese diabetes treatment market. Sanofi stated that as of 2021, there are approximately 0.14 billion adults with diabetes in mainland China, with an adult prevalence rate of nearly 12%.
Sanofi's investment plan comes at a time when the Chinese government is attracting foreign companies to expand their local business. Multinational pharmaceutical companies such as Astrazeneca and Roche have adopted a "in China, for China" strategy to serve the growing china meheco group market.