Sanofi-aventis and Wellstat Therapeutics enter into an Exclusive Worldwide Licensing Agreement
Sanofi-aventis (EURONEXT: SAN and NYSE: SNY) and Wellstat Therapeutics Corporation announced a global licensing agreement on PN2034, a novel oral first-in-class, insulin sensitizer, for the treatment of Type II Diabetes. As a sensitizer, PN2034 is expected to normalize and therefore enhance insulin action in the liver of diabetic patients. The compound is currently in Phase II clinical testing.
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.
November 04, 2009