Published on October 21, 2009 at 2:22 AM
Wellstat Therapeutics Corporation and sanofi-aventis (EURONEXT: SAN)(NYSE: SNY) announced today a global licensing agreement to develop, manufacture and commercialize PN2034, a first-in-class oral insulin sensitizer for the treatment of Type II 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 agreement, sanofi-aventis will receive an exclusive worldwide license to develop, manufacture and commercialize PN2034 and related compounds. 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, Wellstat will receive substantial payments when specified commercial milestones are met and will receive royalties on worldwide product sales.
David M. 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.
http://www.wellstat.com/