Denmark’s Novo Nordisk has announced plans to build a new €70 million plant to manufacture insulin pens in Iran, becoming the first Western drugmaker to announce investment plans to follow the lifting of sanctions.

Observers rate the plans as a vote of confidence in the Iranian post-sanctions economy, paving the way for fresh foreign investment in the Middle East country. The Danish announcement comes less than three months after Iran agreed to curb its nuclear program.

Ole Moelskov Bech, regional head of Novo Nordisk, told international business news media the lifting of sanctions was not a determining factor, as medicines have always been exempt, but this had made the decision easier. Among other things, he said the sanctions had made it difficult to conduct financial transactions and hindered IT communications.

Novo Nordisk, the world’s largest insulin producer, has been engaged in Iran since 2002, selling through a local partner. Bech said it could take four to five years to start production there.