Martinsried, Germany, December 20, 2011 - Scil Technology GmbH, a privately held biopharmaceutical company with core expertise in protein drug development, formulation and analytics, today announced that Sanofi (EURONEXT: SAN and NYSE: SNY) has exclusively licensed Scil Technology's program for the regenerative treatment of osteoarthritis and cartilage disorders.

Under the agreement, SCIL Technology will receive an upfront payment and potential milestone payments totaling up to EUR 180 million. Moreover, the company is entitled to receive undisclosed royalties on worldwide product sales. Sanofi will assume responsibility for the progression of the development program with immediate effect, including the start of clinical trials.

The program is based on targets for the regeneration of cartilage tissue, which also stimulate chondrocyte differentiation and the synthesis of cartilage matrix. The leading compound is based on a proprietary formulation for direct delivery into the joint, making it an excellent treatment option for osteoarthritis. The program is currently in advanced preclinical development.

"We are very pleased about the agreement with Sanofi," said Christian Nafe, CEO of Scil Technology. "It underlines the success of our development programs and our unique expertise in combining biologics with special formulations to develop innovative biopharmaceutical products."

"Sanofi's profound expertise in the therapeutic area and the professional interaction we had during the whole process make us confident, that Sanofi is the right partner we could find for this program" said Klaus Binder, COO of Scil Technology.

"Osteoarthritis is a painful and disabling disease that affects millions of patients. At present there is no available therapy that has been proven to impact the progressive joint damage that is associated with the disease," said John Alam, Head of Therapeutic Strategic Unit (TSU) - Aging, Global Research & Development, Sanofi. "Scil Technology's cartilage regenerative program brings an innovative approach to Sanofi's osteoarthritis portfolio that we believe may have promise to address progressive joint damage by targeting the activation of the body's internal mechanism of cartilage repair and regeneration."

The cartilage regenerative program is Scil Technology's second program which has been out-licensed successfully. The first (GDF-5) was taken over by Medtronic after completion of Phase II.


About Sanofi
Sanofi, a global and diversified healthcare leader, discovers, develops and distributes therapeutic solutions focused on patients' needs. Sanofi has core strengths in the field of healthcare with seven growth platforms: diabetes solutions, human vaccines, innovative drugs, rare diseases, consumer healthcare, emerging markets and animal health. Sanofi is listed in Paris (EURONEXT: SAN) and in New York (NYSE: SNY).

About Scil Technology GmbH
Scil Technology is a privately held German biopharmaceutical company highly experienced in the development of biopharmaceutical drugs with special know-how in demanding formulations. Its development expertise encompasses medical devices, pharmaceutical drugs and regenerative medical products.

Scil Technology, a wholly owned subsidiary of BioNet Holding GmbH, is located in Martinsried, Germany. For further information please visit:



Scil Technology GmbH:

Iris Margraf
Director Business Development

Fraunhoferstr. 15
82152 Martinsried
Tel.: +49/89/8565-1800
Fax: +49/89/8565-1818
Email: [email protected]