Wellstat could earn $350 million from Sanofi-Aventis deal for novel type 2 diabetes age

In another move to expand its pipeline, French drug major Sanofi-Aventis has reached agreement with USA-based Wellstat Therapeutics for a global license to develop, manufacture and commercialize PN2034, a first-in-class oral insulin sensitizer for the treatment of type 2 diabetes. PN2034 was discovered by Wellstat and is currently in Phase II clinical trials to reverse insulin resistance in the liver of diabetic patients.

Under the terms of the deal, Wellstat will receive an upfront cash payment and will be eligible to receive development and regulatory milestones totaling as much as $350 million. In addition, the US firm will receive substantial payments when specified commercial milestones are met and will receive royalties on worldwide product sales.

The latest news confirms the ongoing ambitions of Sanofi-Aventis chief executive Chris Viehbacher to bolster the company's product offerings by acquisitions; over the past few weeks alone, the drug major agreed to buy French eye disease specialist Fovea for around $542 million and licensed Merrimack Pharmaceuticals' MM -121, a Phase I human monoclonal antibody which is Phase I trials to target solid tumors, in a deal that could cost $530 million (The Pharma Letter October 1).

Marc Cuzel, head of R&D at Sanofi-Aventis, said that PN2034 'will allow us to complement our diabetes portfolio with an innovative insulin sensitizer for oral therapy.' The French company's sector portfolio is presently led by Lantus (insulin glargine) and recently unveiled plans for a major research program which will look at any potential link between insulin treatments, notably Lantus, and cancer.

David Wohlstadter, vice president of licensing and business development for Wellstat, commented: 'Sanofi-Aventis has a profound understanding of metabolic diseases, including diabetes, and their markets. The capabilities that Sanofi-Aventis brings to the continuing development of PN2034 promise to maximize the significant potential of this compound for patients needing new therapeutic options. This agreement further validates Wellstat's drug discovery, research and development proficiencies.'

In addition to its novel compounds for diabetes and metabolic diseases, Wellstat Therapeutics has late-stage clinical programs in oncology and an extensive portfolio of earlier stage programs covering a range of therapeutic areas.

The license agreement is subject to antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act, the companies noted.