LONDON (Reuters) - Sanofi-Aventis (SASY.PA: Quote, Profile, Research) has stopped development of two early-stage drugs for type 2 diabetes and dyslipidaemia, the French drugmaker's biotech partner on the project said on Friday.

Genfit (ALGFT.PA: Quote, Profile, Research), headquartered in Lille, France, said in a statement that Sanofi had elected not to continue the further development of compounds AVE8134 and AVE0847, both of which were in Phase IIa clinical studies.

Trials on a third compound, AVE0897, which is in late Phase I, will continue.

Shares in Genfit fell 4.9 percent to 7.41 euros by 0815 GMT.

The two dropped drugs belong to a class of compounds known as PPAR agonists, which have had a chequered history in the pharmaceutical industry. Several have been dropped by other drug companies for failing to live up to expectations.

Nomura Code analyst Mike Ward said the move was unsurprising given the risky nature of PPAR agonists and Sanofi's decision would not lead to any changes in his forecasts for future Sanofi sales or his existing "reduce" recommendation on the stock.

Sanofi research head Marc Cluzel told Reuters on Thursday the group was decreasing the number of products in its portfolio and applying stricter rules for development, but he said the key late-stage projects remained on track [nL03265308].

(Reporting by Ben Hirschler; Editing by Paul Bolding)