Sanofi strikes €3.5 bn diabetes treatment development deal with Hanmi Pharmaceutical

French drug giant Sanofi SA today struck a €3.5 billion ($4.2 billion) deal with South Korea's Hanmi Pharmaceutical Co to develop experimental, long-acting diabetes treatments.

Under the terms of the agreement, Hanmi will receive an upfront payment of €400 million and is eligible for up to €3.5 billion in development, registration and sales milestones, as well as double digit royalties on net sales.

Sanofi will obtain an exclusive worldwide license to develop and commercialise efpeglenatide, a late-stage long-acting glucagon-like peptide-1 receptor agonists (GLP1-RA), as well as an weekly insulin and a fixed-dosed weekly GLP-1-RA/insulin drug combination.

Collectively, these therapeutic drugs are known as the "Quantum Project", which will use Hanmi's proprietary Long Acting Protein / Peptide Discovery Platform Lapscovery technology.

Hanmi will retain an exclusive option to co-commercialise the products in South Korea and China.

The Quantum Portfolio is based on Hanmi's proprietary Lapscovery technology which prolongs the duration of action of biologics. The objective is to minimize the frequency of treatment and the dose required, thereby potentially lowering the adverse event rates and optimising efficacy, according to Hamni.

"The agreement to develop these three investigational diabetes medicines confirms Sanofi's long-term commitment to people with this disease," said Pascale Witz, executive vice president, Sanofi. "In these ways, we aim to complement our current offerings and work to serve a broader patient population."

"We are pleased that Sanofi with its long heritage and as a proven leader with solid track of success in diabetes, has recognized the value of Hanmi's Quantum Project," said Dr. Gwan Sun Lee, CEO / president of Hanmi Pharmaceutical