(Reuters) -Thermo Fisher said on Wednesday it will buy Sanofi's manufacturing site in Ridgefield, New Jersey, to produce critical medicines for the French drugmaker.
WHY IT'S IMPORTANT
Sanofi has been expanding its manufacturing presence in the U.S. market, following efforts from peers such as Roche and Novartis, in a response to President Donald Trump's repeated tariff threats on medicines.
The drugmaker plans to invest at least $20 billion in the United States through 2030 to boost manufacturing and
research.
Thermo also plans to increase its U.S. manufacturing investments in the range of about $2 billion to mitigate any tariff hit, the company said in April.
CONTEXT
Under the deal, Thermo will continue manufacturing a portfolio of therapies for Sanofi after the acquisition.
The Ridgefield site operates as a sterile fill-finish and packaging facility with more than 200 employees who will join Thermo Fisher.
BY THE NUMBERS
The companies did not disclose the financial terms of the deal. The transaction is expected to close in the second half of 2025.
MARKET REACTION
Shares of Paris-based Sanofi were up 1%, while Thermo Fisher's shares climbed marginally in early trade.
KEY QUOTE(S)
"Sanofi's Ridgefield site will strengthen our U.S. manufacturing capabilities, enabling us to better support our pharmaceutical and biotech customers with the critical production capacity needed for essential medicines," said Marc Casper, CEO of Thermo Fisher.
WHAT’S NEXT
Thermo Fisher said it will strengthen its partnership with Sanofi while investing to expand the Ridgefield site with additional manufacturing capacity.
(Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid)
