EU approves 400 million euros in state aid for Sanofi insulin production in Frankfurt

In order to strengthen the supply of insulin, Germany is allowed to support the drug manufacturer Sanofi with 400 million euros. The EU Commission said the company based in Frankfurt could thus be compensated for its net costs. It examines state aid like this to avoid distortion of competition.

According to the Brussels authorities, in return, Sanofi-Aventis Deutschland GmbH is committed to building a new insulin factory at its location in Frankfurt's Höchst district by the end of 2032. At least 1.1 tons of insulin should be produced there annually by the end of 2042. The drug manufacturer must also stock a ton of pharmaceutical insulin active ingredients and give priority to European markets in the event of a shortage of insulin supplies.

This is the only place where human insulin is produced

Without the funds, Sanofi would close its German location, according to a statement from the EU Commission. It is the only production site for human insulin in the European Economic Area and one of only two insulin production sites in the area. “As some products such as human insulin would no longer be manufactured in the EEA, Europe would be dependent on imports from third countries,” the authority said.

Human insulin is used to treat diabetes mellitus. The metabolic disorder leads to increased blood sugar levels. Insulin ensures that glucose from the blood can be absorbed into the body's cells.

The French pharmaceutical company Sanofi announced in 2024 that it would invest around 1.3 billion euros in the construction of a modern insulin production facility at its site in Frankfurt by 2029. Several hundred skilled workers are expected to work there in the future. Sanofi's investment is made possible by the support of the federal government, the Hessian state government and the city of Frankfurt. The green light from Brussels was the last hurdle. According to the company, around 6,500 people recently worked at the Frankfurt location.