Three years after investing $248 million in a Type 2 diabetes joint venture with Google’s (NSDQ:GOOGL) Verily Life Sciences, , Sanofi (NYSE:SNY) is backing out.
The drug company’s new CEO made the announcement during a capital markets meeting yesterday, saying the company had over-invested in the virtual diabetes clinic, Onduo, according to published reports. Sanofi will also stop developing diabetes and cardiovascular drugs because of slumping sales, CEO Paul Hudson told analysts.
Cambridge, Mass.-based Onduo’s goal was to combine Verily’s expertise in miniaturized electronics, analytics, and consumer software with Sanofi’s diabetes program. Onduo is the fruit of the collaboration announced in 2015 between Verily and the French pharmaceuticals giant. Verily had contributed an equal amount toward the venture.
In May, Verily announced it would begin working with Novartis (NYSE:NVS), Otsuka (NYSE:OTSKY), Pfizer (NYSE:PFE) and Sanofi to develop clinical research programs.
Onduo did not immediately respond to a request for comment on Sanofi’s latest move.