Wellstat Therapeutics (Wellstat) and Sanofi-Aventis have entered into a global licensing agreement to develop, manufacture and commercialise 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.
As per the agreement, Sanofi-Aventis will receive an exclusive worldwide license to develop, manufacture and commercialise PN2034 and related compounds. Wellstat is expected to receive an upfront cash payment and will be eligible to receive development and regulatory milestones totaling as much as $350m.
In addition to that Wellstat is also expected to receive substantial payments when specified commercial milestones are met and will receive royalties on worldwide product sales.
David Wohlstadter, vice president of licensing and business development for Wellstat, said: “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 maximise the significant potential of this compound for patients needing new therapeutic options.”
Reportedly, the license agreement is subject to antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act.