Diabetes drug firms Sanofi, Novo expand global footprint

While fellow diabetes drug manufacturer Eli Lilly amped up capacity for injectables by investing $3 billion at its Wisconsin, US site earlier this month, Sanofi and Novo Nordisk too have jumped on the expansion bandwagon. 

French firm Sanofi has invested approximately €1 billion ($1.5 billion) at its insulin manufacturing site in Beijing, China. Signing a Memorandum of Understanding (MoU) with the Beijing municipality government, the firm is opening a facility in the Beijing Economic-Technological Development Area. 

“This investment marks an important milestone as we celebrate 60 years of Sino-French diplomatic ties,” Sanofi Chairman Frédéric Oudéa said. 

“The growing healthcare needs, rapid innovation, and supportive policy environment in China have reinforced Sanofi’s confidence and long-term commitment to continue investing in [the country]. This investment will create stronger manufacturing presence and strengthen our supply chain partnerships and contribute to building a stronger pharmaceutical ecosystem in China.” 

According to the firm, the Beijing plant will manufacture insulin products for diabetes catering to demand amongst Chinese patients. The site will be a part of Sanofi’s three-facility framework across China, with other plants located in Shenzhen, and Hangzhou. 

“The site will meet international standards of high quality, automation, and environmental sustainability to ensure excellent production standards, enhance supply chain resilience, and better meet the growing needs of diabetic patients,” Sanofi CEO Paul Hudson added. 

In August 2024, Sanofi broke ground at its Frankfurt, Germany facility investing €1.3 billion ($1.36 billion). The 36,000 square-meter facility is expected to open by 2029, and will produce Sanofi’s Lantus insulin, which is a long-acting insulin used to control high blood sugar in adults and children with diabetes mellitus. 

Novo Nordisk

With an investment of 2.9 billion Danish kroner ($400 million) Danish drugmaker Novo Nordisk is expanding its Hillerød, Denmark facility. The 53,000 square-meter facility will comprise of a quality control laboratory and is being dubbed by the firm as its largest investment in advanced quality control to date. 

“This state-of-the-art quality control laboratory highlights Novo Nordisk's global growth journey and our dedication to innovation,” said Erik Lorin Rasmussen, senior vice president of product supply, Aseptic Manufacturing, Novo Nordisk. 

“As we expand our manufacturing capacity and anticipate new products to meet the growing global demand, this new quality control facility will play an important role in ensuring the quality of our products and position us to meet the evolving requirements of patients and regulators.” 

Expected to be open by 2027, the laboratory will serve as a central hub for quality control operations in Denmark using new technologies and digital innovation to automate processes and further strengthen quality control processes. 

A frontrunner in the GLP-1 race, Novo recently acquired Novavax’s 150,000 square-foot manufacturing plant in Bohumil, Czech Republic for $200 million. Providing a further boost to Novo’s wonder drug Wegovy (semaglutide), the European Commission has cleared Novo Holdings – a holding and investment company responsible for managing Novo Nordisk – to acquire contract development and manufacturing organization (CDMO) Catalent last week. 

Additionally, in April 2024, the firm invested $556 million to expand its Tianjin, China production facility, located 110km southeast of Beijing. Using isolator technology, the firm aims to produce products with better sterility and is likely to support Wegovy for Chinese customers.