Sanofi-AgaMatrix Deal a Harbinger

Sanofi-Aventis is allying with AgaMatrix around the latter's blood glucose monitoring technology. The deal gets Sanofi a BGM product line and access to a technology around which it can begin to build an integrated diabetes management system. Importantly, it signals to other companies that it is moving in that direction. That could help Sanofi in partnering or M&A discussions around other aspects of diabetes device development, including continuous glucose monitoring, and also stimulate competitors to pick up the deal-making pace.