Pharma giant Sanofi opens $595 million vaccine facility in Singapore to prepare for potential pandemics

SINGAPORE — French pharmaceutical giant Sanofi on Wednesday opened a 800 million Singapore dollar ($595 million) "evolutive vaccine facility," or EVF, in Singapore — the only such facility the company has outside of France.

This plant, known as Modulus, can switch between making different vaccines or treatments in a matter of days, compared to several weeks or months in more conventional facilities. It is also able to be adapted to manufacture up to four vaccines or biopharmaceuticals simultaneously.

Sanofi said in a release that the facility holds the potential to significantly bolster pandemic preparedness.

"By establishing the groundwork for crucial production modules now, Modulus can ensure a swift and targeted response to any future health needs, including potential pandemics," the company said.

This is part of the company's 900 million euro ($948 million) investment to develop two new EVFs globally over five years. The other EVF is in Neuville-sur-Saône, France.

Speaking to CNBC during the launch, Brendan O'Callaghan, Sanofi's executive vice president for manufacturing and supply, said that while the Modulus facility is a manufacturing hub for global needs, should a pandemic emerge, the company will work with authorities to try to make capacity available "as much as we can."

"So we don't reserve capacity right now today, for that purpose. But we will look at what we can do flexibly to support such an event," he said.

The main advantage that Modulus holds over traditional vaccine and biotherapeutics plants, he said, was the ability to quickly scale production up or down in a much faster way.

So, if a pandemic occurs, "we can scale down our existing production, scale up the new production that might be needed, and try to meet a balance."

Speaking at the inauguration event, Singapore Health Minister Ong Ye Kung said strengthening pandemic preparedness and response is especially important after the Covid-19 pandemic, where the world saw "a swell of vaccine nationalism" as nations aspired to develop and produce their own products.

Singapore is trying a different approach, Ong said in his keynote speech, instead inviting companies like Sanofi to invest in the country and build up its capabilities.

The facility will contribute about 200 jobs to the city-state, including bioprocess engineers, automation specialists and data analysts, and will be fully operational by mid-2026.

"We are doing this, not despite having a small local market, but because we have a small local market. Because with a modest domestic demand, coupled with Singapore's role as an international hub, an investment here is well positioned to serve broader, regional and global needs," Ong said.

Ong also emphasized that in Singapore, the country has a competitive tax regime, a skilled and well educated workforce, and a stable industrial relationship.

He said, "never be afraid of unions here. They are different. The unions here work with industry, work with governments, in a close tripartite relationship, helping each other realize our objectives."

As such, he said, due to reasons like good living conditions, the rule of law and a stable political and social environment, international investors are confident in putting their most important facilities in Singapore.