Medtronic buys EOFlow for wearable insulin patch technology
EOFlow’s device will be integrated with Medtronic’s Meal Detection Technology algorithm
More than 37 million Americans alone have diabetes, and approximately 31% of these patients are treated with insulin, which carries its own risks: incorrect dosage of insulin, i.e. too much or too little injection, or at the wrong time, can lead to problems such as hypoglycemia, hyperglycemia, large glycemic excursions or diabetic ketoacidosis.
To help solve this problem, the South Korean company EOFlow has developed a device called EOPatch, featuring microfluidic technology designed to deliver insulin with greater precision and reliability, while minimizing the risk of occlusion of insulin, i.e. a blockage that prevents the pump from delivering insulin correctly
Now the company will be able to spread its technology to even more people, as medical technology company Medtronic plc announced on Thursday that it has entered into a series of definitive agreements to acquire EOFlow and its technology.
Pursuant to the agreement, Medtronic will acquire all of its shares in EOFlow at a price per share of KRW 30,000 ($22.57 in US dollars). In addition, pursuant to a share subscription agreement with EOFlow, Medtronic will also acquire new shares at a price per share of KRW 24,359 ($18.32), which will be used to fund operational and research and development needs. ‘EOFlow. In total, this brings the price of the acquisition, which is expected to close in the second half of this year, to KRW 971 billion, or $738 million.
The EOPatch device is a tubeless, portable, fully disposable external insulin delivery device that automatically injects insulin from outside the body. The device is designed to be discreet, so it can be worn on different parts of the body.
In the future, it will be integrated with Medtronic’s Meal Detection Technology algorithm, which provides insulin to help account for when users forget to take a bolus or undercount. of carbs in their meal, as well as the company’s continuous glucose monitor (CGM), the System 780G Insulin Pump, which was cleared by the FDA a month ago.
Founded in 2011, EOFlow, headquartered in Seongnam, South Korea, which also has offices in San Jose, is authorized to market the EOPatch in Europe, South Korea, Indonesia and the United Arab Emirates; the EOPatch was first launched in South Korea in April 2021, then in September 2022 in Europe, while also getting the United Arab Emirates in the same month. It also got approval from Indonesia in October 2022. By the end of 2022, EOFlow had more than 600 EOPatch users in Korea.
The company is not yet cleared to market in the United States, although it submitted its application to the FDA in December; it previously received Breakthrough Device Designation for the EOPancreas System, its closed-loop automated insulin delivery/artificial pancreas device, in 2019.
“We are excited to accelerate our next phase of growth with a partner like Medtronic who shares our goal of simplifying diabetes management to make life easier for the customers we serve,” said Jesse J. Kim, CEO and Founder of EOFlow, in a statement.
“Together, we will work to advance innovation in wearable insulin patch technology to expand our reach to more people around the world with diabetes. With a global footprint in more than 100 countries, the ability to ‘Rapidly scale manufacturing, and advanced software and sensor capabilities, Medtronic is the ideal strategic partner for EOFlow.’
(Image source: eoflow.com)