PARIS (Reuters) - French drugmaker Sanofi (PA:SASY) and Google (NASDAQ:GOOGL) owner Alphabet's U.S-based life sciences company Verily, announced on Monday the launch of a joint-venture aimed at offering patients suffering from diabetes products that will combine devices and services.
Sanofi said last year it was working on a partnership with Google in diabetes.
"The company will leverage Verily's (formerly Google Life Sciences) experience in miniaturised electronics, analytics, and consumer software development, and Sanofi's clinical expertise and experience in bringing innovative treatments to people living with diabetes," the two companies said on Monday.
Nearly 400 million people worldwide have diabetes, with the type 2 version accounting for more than 90 percent of cases. Without proper treatment or lifestyle changes, those numbers are expected to grow substantially in the coming years.
The JV, called Onduo, "will initially focus on the type 2 diabetes community, specifically on developing solutions that could help people make better decisions about their day to day health, ranging from improved medication management to improved habits and goals," Sanofi and Verily said.
A spokeswoman for Sanofi said products on sale would include connected objects such as insulin pens and online services.
No financial details were disclosed but the spokeswoman said Sanofi had invested $248 million in the joint venture, in which the French group controls a 50 percent stake.
The group is actively working at reviving declining sales in its diabetes division, hurt by sustained pricing pressure in the United States, the world's largest health market.