Sanofi inks $335M diabetes deal with CureDM

Sanofi-Aventis (NYSE: SNY) has signed a $335 million deal for the exclusive worldwide license of CureDm's Pancreate, a treatment for Type 1 and Type 2 diabetes. Phase I trials of the drug are expected to begin later this year. Sanofi is getting the rights to manufacture, develop and market Pancreate for diabetes in human and veterinary applications. CureDM will receive an upfront cash payment and success-based development, regulatory and sales performance milestone payments.

"Once fully developed, Pancreate has the potential to become the first regenerative treatment of Type 1 and Type 2 diabetes and to address the challenges that the growing diabetes epidemic poses on patients and healthcare systems," says Sanofi R&D chief Marc Cluzel in a statement.

Sanofi's deal with CureDM is part of the French drug developer's strategy to become a leader in diabetes medicines--a space that's currently dominated by Novo Nordisk and Eli Lilly. Sanofi forked over $350 million in October to in-license mid-stage diabetes drug PN2034 from Wellstat Therapeutics. Sanofi markets Lantus, a blockbuster diabetes drug that is its second-biggest therapy on the market.

- read Sanofi's release
- here's the Reuters report for more