Sam Brusco, Associate Editor12.06.23
Medtronic said in an SEC filing today that it notified EOFlow about terminating its agreement to acquire the company.
The company said it exercised its right to terminate the definitive agreements “based upon multiple breaches under the Agreements.” Medtronic also said it doesn’t believe any termination fee is payable under the agreements.
EOFlow is the manufacturer of the EOPatch, a tubeless, wearable, and fully disposable insulin delivery device. EOPatch touts microfluidic technology designed to deliver insulin with high accuracy and reliability, while minimizing the risk of insulin occlusion.
Medtronic’s $738 million deal to acquire EOFlow was first announced in May 2023. In August, Rival insulin pump maker Insulet claimed in a lawsuit filing that EOFlow's EOPatch violated three of the patents for its Omnipod pump and that the designs are "practically identical."
Insulet alleged when EOFlow was founded in 2011, it began with a patch-pump using a different technology than Omnipod for insulin delivery, but around 2016, "Instead of continuing to independently design and develop its own patch pump, EOFlow pivoted and launched a plan to brazenly copy Insulet’s Omnipod System," hiring former Insulet executives and critical employees to oversee developmwnt, manufacturing, approval, and marketing of EOPatch. The company also alleged that EOFlow's manufacturer, Flex, had misappropriated trade secrets.
EOFlow has already launched EOPatch in Korea and Europe. The company submitted the device for U.S. Food and Drug Administration (FDA) clearance in January. It features a glucose monitoring sensor, insulin pump, and algorithm for automated insulin delivery.
The termination, Medtronic said, doesn’t impact the company’s fiscal year 2024 adjusted earnings per share guidance range that it provided on November 21. The company also affirmed its continued advance of automated insulin dosing products, including a differentiated patch pump.
Medtronic’s MiniMed 780G system with the Guardian 4 sensor earned FDA approval in April 2023 as well. The system features meal detection technology.
The company said it exercised its right to terminate the definitive agreements “based upon multiple breaches under the Agreements.” Medtronic also said it doesn’t believe any termination fee is payable under the agreements.
EOFlow is the manufacturer of the EOPatch, a tubeless, wearable, and fully disposable insulin delivery device. EOPatch touts microfluidic technology designed to deliver insulin with high accuracy and reliability, while minimizing the risk of insulin occlusion.
Medtronic’s $738 million deal to acquire EOFlow was first announced in May 2023. In August, Rival insulin pump maker Insulet claimed in a lawsuit filing that EOFlow's EOPatch violated three of the patents for its Omnipod pump and that the designs are "practically identical."
Insulet alleged when EOFlow was founded in 2011, it began with a patch-pump using a different technology than Omnipod for insulin delivery, but around 2016, "Instead of continuing to independently design and develop its own patch pump, EOFlow pivoted and launched a plan to brazenly copy Insulet’s Omnipod System," hiring former Insulet executives and critical employees to oversee developmwnt, manufacturing, approval, and marketing of EOPatch. The company also alleged that EOFlow's manufacturer, Flex, had misappropriated trade secrets.
EOFlow has already launched EOPatch in Korea and Europe. The company submitted the device for U.S. Food and Drug Administration (FDA) clearance in January. It features a glucose monitoring sensor, insulin pump, and algorithm for automated insulin delivery.
The termination, Medtronic said, doesn’t impact the company’s fiscal year 2024 adjusted earnings per share guidance range that it provided on November 21. The company also affirmed its continued advance of automated insulin dosing products, including a differentiated patch pump.
Medtronic’s MiniMed 780G system with the Guardian 4 sensor earned FDA approval in April 2023 as well. The system features meal detection technology.