Medtronic to Buy Wearable Insulin Patch Maker EOFlow for $738M

Medtronic began a set of agreements to acquire EOFlow Co., manufacturer of the EOPatch, a tubeless, wearable, and fully disposable insulin delivery device.
 
Together with Medtronic’s Meal Detection Technology algorithm and next-gen continuous glucose monitor (CGM), EOFlow is expected to help Medtronic address the needs of more patients with diabetes.
 
“Our goal is to simplify diabetes management and deliver the well-established benefits of automated insulin delivery to our customers in the ways they want and need,” Que Dallara, EVP & President, Medtronic Diabetes, told the press. “We’re excited to introduce a differentiated wearable patch option to provide more patient choice and drive further innovation for those who want to use technology to make living with diabetes easier. We look forward to expanding our offerings to participate in the patch pump market and enabling those customers access to our seamless ecosystem of support.”
 
EOPatch features a proprietary microfluidic technology designed to deliver insulin with high accuracy and reliability while minimizing the risk of insulin occlusion. It’s authorized for marketing in Europe, South Korea, Indonesia, and the United Arab Emirates with a compatible smartphone application that allows users to monitor and control the patch directly from their phone.
 
On the deal’s close, Medtronic will work quickly to integrate EOPatch with its Meal Detection Technology algorithm currently offered in its MiniMed 780G system. With the development and regulatory authorization of the next-generation EOPatch device, Medtronic customers will have access to a broad range of solutions across smart multiple daily injections (MDI), tethered insulin pumps, and wearable insulin patch technologies leveraging clinically advanced and proven algorithms and seamlessly integrated to a single CGM platform.
 
“We’re thrilled 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. “Together, we’ll work to advance innovation in wearable insulin patch technology to expand our reach to more individuals around the world living with diabetes. With a global footprint in over 100 countries, ability to scale up manufacturing quickly, and advanced software and sensor capabilities, Medtronic is the ideal strategic partner for EOFlow.” 
 
Total consideration for the acquisition of the shares in EOFlow would be KRW 971 billion, or $738 million, at current exchange rates. The acquisition is expected to close in the second half of calendar year 2023.