Sanofi and Wellstat team up to work on investigational drug

GAITHERSBURG, Md. Sanofi-Aventis and Wellstat Therapeutics Corp. will work together on an investigational drug for treating Type 2 diabetes, the two companies announced.

Under an agreement between the two companies, Sanofi will receive an exclusive worldwide license for the drug, currently called PN2034, and related compounds, while Wellstat will receive an upfront cash payment and milestone payments totaling up to $350 million, as well as royalties.

“Sanofi-Aventis has a profound understanding of metabolic diseases, including diabetes, and their markets,” Wellstat VP licensing and business development David Wohlstadter said in a statement. “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.”