Sumitomo Dainippon gains Japan and other Asian rights to imeglimin

Japan’s Sumitomo Dainippon Pharma (TYO: 4506) has entered into a strategic collaboration with French diabetes-focused biotech firm Poxel (Euronext: POXEL) for the development and commercialization of imeglimin, an investigational therapeutic agent for type 2 diabetes, in Japan, China, South Korea, Taiwan and nine other Southeast Asian countries.

News of the deal sent the shares of Poxel rocketing more than 40% to 7.56 euros in morning trading today, while the Japanese drugmaker dipped 0.8%.

The partnership enables Sumitomo Dainippon to add an innovative late-stage development product to its well-established diabetes drug franchise in the fast-growing diabetes market in Japan. Poxel also gains a leading pharmaceutical partner for imeglimin with an extensive track record in late-stage development and commercialization in Asia. Diabetes is a fast-growing market in Asia and Japan is the second largest single market for type 2 diabetes outside of the USA.