Generex says Sanofi unit will supply insulin for testing and sales of oral insulin spray

Generex enters insulin supply deal for Oral-lyn

NEW YORK — Generex Biotechnology Corp. said Wednesday it entered a supply agreement with Sanofi-Aventis that will give Generex the insulin it needs to test and market its diabetes drug candidate Generex Oral-lyn.

Generex said a German subsidiary of Sanofi-Aventis will provide recombinant human insulin crystals for use in trials of the drug as well as sales should the drug be approved. The company said the agreement gives it a source of insulin for major markets including the U.S. and Canada.

Generex described the deal as “long-term,” but the companies did not disclose financial terms.

Generex Oral-lyn is administered orally and is designed to be an alternative to insulin injections. It is given through a device that resembles an asthma inhaler.

In midday trading, shares of the Worcester, Mass., company rose 6 cents, or 11.9 percent, to 57 cents. U.S.-listed shares of Sanofi-Aventis fell 22 cents to $38.51.