Sanofi Makes Their Move and AgaMatrix is the Winner
This morning Sanofi- Aventis (NYSE:SNY) announced they have signed an agreement with privately held AgaMatrix. According to an AgaMatrix press release; “AgaMatrix, Inc. and Sanofi-Aventis (EURONEXT: SAN and NYSE: SNY) today announced that they have signed a long-term agreement for the development, supply and commercialization of blood glucose monitoring (BGM) solutions. Under the terms of the agreement, AgaMatrix and Sanofi-Aventis will co-develop innovative solutions in diabetes management that incorporate AgaMatrix’s WaveSense™ technology. Sanofi-Aventis will commercialize through its Global Diabetes Division such integrated solutions for patients with diabetes, along with current Sanofi-Aventis insulin’s and delivery devices. Sanofi-Aventis’ insulin and device portfolio include Lantus®, a basal insulin that is the number one insulin prescribed worldwide, and Apidra®, a leading fast-acting insulin, plus its easy-to-use delivery pens SoloSTAR® and ClikSTAR®.”
This move really comes as no surprise as it’s been well known that Sanofi was seeking to enter the diabetes device area. Some may be surprised that Sanofi selected AgaMatrix as their partner and not a more established player in the diabetes device or BGM world. While AgaMatrix may not have the market presence of a more established player they do have some of the best technology and certainly benefited from the recent concern over glucose monitor accuracy.
Although Diabetic Investor is not privy to the terms of the deal more than likely Sanofi thought they would have a better chance of developing innovative products with AgaMatrix than they would with a more established player. What AgaMatrix lacks in market share, they more than make up for with technology and innovation.
The question now becomes what will Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO) do? Also while AgaMatrix fills Sanofi needs in BGM what about insulin delivery, will the company take the next step and acquire an insulin pump company such as Insulet (NYSE:PODD)? As Diabetic Investor has said as recently as yesterday, this move by Sanofi is the first step towards the company offer a complete diabetes management system which will include everything the patient needs all in one nice little neat package.
Things are certainly changing in the diabetes device world and this move by Sanofi will likely be the catalyst for even more deals.
