Under this agreement, sanofi-aventis will receive an exclusive worldwide license to develop, manufacture and commercialize PN2034 and related compounds.
"With over 80 years experience in the research, development and commercialisation of effective diabetes treatments, we are very excited about the possibility to explore a new avenue in the treatment of Diabetes," declared Marc Cluzel, Executive Vice-President R&D, sanofi-aventis. "Having been at the forefront of innovation in Diabetes in particular with Lantus® which has become the world's leading insulin, PN2034 will allow us to complement our Diabetes portfolio with an innovative insulin sensitizer for oral therapy."
Under the terms of the agreement, Wellstat Therapeutics will receive an upfront cash payment for the development, manufacturing and commercialization rights, and is eligible for development and regulatory milestone payments. The total of all those payments could reach $350 million. Wellstat Therapeutics will also receive royalties on the worldwide product sales and performance based sales milestones.
The license agreement is subject to antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
About Diabetes Mellitus
Diabetes is a chronic, widespread condition in which the body does not produce or properly use insulin, the hormone needed to transport glucose (sugar) from the blood into the cells of the body for energy. More than 230 million people worldwide are living with the disease and this number is expected to rise to a staggering 350 million within 20 years. It is estimated that nearly 24 million Americans have diabetes, including an estimated 5.7 million who remain undiagnosed. At the same time, about 40 percent of those diagnosed are not achieving the blood sugar control target of HbA1c <7 percent recommended by the ADA. The HbA1c test measures average blood glucose levels over the past two- to three-month period.
About Wellstat Therapeutics
Wellstat Therapeutics is a privately-held biopharmaceutical company located in Gaithersburg, Maryland. Wellstat Therapeutics is committed to discovering, developing and commercializing products that will provide new and improved treatments for patients in the fields of oncology, metabolic, neurometabolic and neurodegenerative diseases. Wellstat Therapeutics is part of the Wellstat Group of Companies. For more information, please visit the company's website at http://www.wellstat.com.
Sanofi-aventis, a leading global pharmaceutical company, discovers, develops and distributes therapeutic solutions to improve the lives of everyone. Sanofi-aventis is listed in Paris (EURONEXT: SAN) and in New York (NYSE: SNY).