Sanofi to restructure Newton diabetes startup Onduo, saying it 'over-invested' - (Boston Business Journal via NewsPoints Desk)

  • Sanofi is restructuring its Onduo diabetes-focussed joint venture with Verily, one of several moves the drugmaker is implementing as part of a recently announced strategy shift, reported the Boston Business Journal.

  • Sanofi and Google's life science subsidiary launched the start-up in 2016 to tackle type 2 diabetes with a virtual clinic consisting of an app, glucose monitoring devices and digital guidance from physicians.

  • According to Sanofi's year-end report, it launched a commercial pilot program last year, and it recently indicated that its "virtual diabetes clinic" now extends to every state in the continental US.

  • The companies had committed $500 million toward the venture when it launched, with each expected to contribute half. However, the news source said financial records show Sanofi has now funneled around $475 million in Onduo over the last three years. 

  • Sanofi CEO Paul Hudson said the company had "over-invested" in the venture and will be restructuring its involvement with the start-up, remaining an investor, but no longer actively playing a role in Onduo operations. 

  • Meanwhile, Onduo and Verily stated that Onduo is now "pursuing plans to expand the solution for use in chronic conditions beyond diabetes," but did not specify which diseases it will probe.

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