Sanofi has agreed to collaborate with Lexicon Pharmaceuticals on Sotagliflozin, a potential oral treatment for people with diabetes, the French drugmaker said on Friday.

Lexicon will receive an upfront payment of $300 million under the collaboration and license deal, Sanofi said in a statement.

Lexicon could also receive development, regulatory and sales milestone payments of up to $1.4 billion, as well as rising double-digit percentage royalties on net sales of Sotagliflozin.

(Reporting by Alan Charlish; Editing by James Regan)