South Korean pharmaceutical company Hanmi Pharmaceutical Co. said Thursday that it has reached a license agreement with global drugmaker Sanofi to develop a portfolio of experimental, long-acting diabetes treatments, valued at up to 3.9 billion euros (US$4.2 billion).

Under the agreement, Hanmi will receive an upfront payment of 400 million euros and is also eligible for up to 3.5 billion euros in development, registration and sales milestones, as well as double-digit royalties on net sales.

The value of the agreement marks the largest license deal for a South Korean pharmaceutical firm ever.

Sanofi will obtain an exclusive worldwide license to develop and commercialize the treatments, called the "Quatum Project."

Hanmi will retain an exclusive option to co-commercialize the products in Korea and China, it said.

"We are pleased that Sanofi with its long heritage and as a proven leader with a solid track of success in diabetes has recognized the value of Hanmi's Quantum Project," said Hanmi Pharmaceutical President Lee Gwan-sun. (Yonhap)