Sanofi diversifies further with diabetes test deal

LONDON, March 31 (Reuters) - French drugmaker Sanofi-Aventis (SASY.PA) broadened its healthcare business further on Wednesday by agreeing to develop blood sugar monitoring systems with AgaMatrix, a privately held U.S. firm.

The move is part of a clear diversification strategy by Chief Executive Chris Viehbacher, who told Reuters last year he would look beyond conventional medicine to certain medical devices, including ones for monitoring health. [ID:nL5498514]

Under the terms of the agreement, AgaMatrix and Sanofi will co-develop blood glucose monitoring devices that can simplify the management of insulin therapy, where Sanofi is already a leader with drugs such as Lantus.

Sanofi plans to start selling the first products from the partnership in the second half of 2010, it said. (Reporting by Ben Hirschler; Editing by David Holmes)