(Yicai Global) Nov. 21 -- French multinational pharmaceutical giant Sanofi will invest to set up a research institute in Suzhou in eastern China's Jiangsu province.

Sanofi plans to complete the institute's construction and put it into operation in the third quarter of next year and to invest a total of more than EUR100 million (USD114.2 million) in the next five years, the company announced yesterday. 

The institute will focus on developing biomedical products targeting tumors, auto-immune and metabolic diseases, as well as other critical illnesses, per the plan.

The decision to locate the research institute in Suzhou Industrial Park fully reflects the firm's recognition of China's capability in innovation, Jean-Christophe Pointeau, who serves as the country chair for Sanofi China, noted, adding that Suzhou Industrial Park is one of the most important bases for biomedicine in China and will help Sanofi conduct ongoing research and development of new medicines.

It is not the drug maker's first significant investment in China. It announced a proposed investment of CNY500 million (USD72 million) to build its operation and innovation center in Chengdu, in southwestern Sichuan province in July, to support the R&D of new drugs and manage the files and data of clinical tests.

The growth rate of domestic demand for medical care is higher than the world average. 

The Chinese government has successively accelerated the review and approval procedures for new medicines in recent years in response to this trend, and this has encouraged foreign pharmaceutical giants to repeatedly invest in the country.

Editor: Ben Armour