France’s finance minister condemned on Thursday a move by French drugmaker Sanofi (SASY.PA), to invest a minimum of $20 billion in the United States until 2030, as France seeks to attract more companies to invest within the country than overseas.
“It’s obvious that it was not a nice thing to watch and it was not a pleasant revelation,” finance minister Eric Lombard said on BFM Business TV.
“It sends out a bad signal,” he also stated, indicating he wished Sanofi would keep investing in France.
The French pharmaceutical company, among the world’s largest vaccine manufacturers and a global leader in anti-inflammatory medications, announced Wednesday it would increase U.S. production capacity through direct investment in Sanofi facilities, and alliances with other domestic companies.
Sanofi’s move was the latest by major drugmakers that have been ramping up their U.S. operations in reaction to President Donald Trump’s trade policies.
Sanofi, one of France’s largest drug makers, declared it plans to spend nearly $20 billion in the U.S. before 2030. The company is working on increasing its manufacturing and R&D activities in the U.S. healthcare area. The major investment will help build production plants, foster new collaborations and drive research and development within the country for Sanofi. Many major companies decide to focus on biotech in North America because this region has large markets, is reliable and has rules that support biotech innovation.
Nevertheless, French officials have opposed the trend, trying to persuade big French firms to make investments within the country. The struggle suggests that European countries still struggle to compete with the financial and innovative edge the U.S. has when trying to attract foreign investment. The way Sanofi is acting points to the extensive influence of the U.S. pharmaceutical market and illustrates how multinational companies are focusing more on growing globally instead of being most concerned with their home country.