Sanofi invests $20 billion: Trump policy forces action!

Sanofi invests $20 billion: Trump policy forces action!

The French pharmaceutical company Sanofi announced on Wednesday evening that it wanted to invest at least $20 billion in the USA by 2030. This decision comes against the backdrop of a new package of measures that US President Donald Trump issued two days earlier to reduce drug prices. Sanofi is thus responding to the growing pressure to increase production in the USA and to invest significantly in research and development in order to increase its own profits and to accommodate the USA. Loud FAZ It is unclear whether the announcement is made for symbolic reasons or whether it is actually intended to bring about substantive change.

Sanofi plans to expand its production capacity through direct investments and partnerships with domestic manufacturers. Paul Hudson, CEO of Sanofi, emphasizes that these investments are crucial to securing the long-term production of important medicines in the USA. The investments are also expected to create numerous high-paying jobs in several states.

Investment details

The exact details of the planned investments have not yet been disclosed. However, Sanofi, as the largest European pharmaceutical company, is confident that increasing spending on research and development and investing billions in production will be key factors in future success. Sanofi currently employs around 13,000 people in the USA, which corresponds to around 16% of the total workforce.

The US market plays an important role for Sanofi: in 2022, the company generated almost 49% of its consolidated sales in the USA. In 2024, Sanofi had sales of almost 20 billion euros in the United States, which is more than twice as much as sales across Europe, which amounted to 9 billion euros. These signals indicate that Sanofi would like to continue to focus more on the US market in the future.

Investments in Europe

Despite the extensive investments in the USA, the plans for Europe are not affected. Sanofi plans to invest 19.5 billion euros in France and between 1.3 and 1.5 billion euros in the Höchst industrial park in Frankfurt, where a new insulin production facility is to be built by 2029. However, detailed information about the schedule for the start of construction work is still pending.

The pressure on European pharmaceutical companies is growing. The Roche company has also announced that it will review planned investments of $50 billion in the USA. The entire industry faces challenges influenced not only by the U.S. government but also by market conditions. Loud MarketScreener Sanofi's net sales in the USA represent 48.7%, while in France only 4.4% are achieved.

The coming years will be crucial in determining how Sanofi responds to the pressure and whether the planned investments can deliver the hoped-for results.