Medtronic Plc. Continues to invest and expand the portfolio of its diabetic business, which contributed around USD 2.3 billion to the fiscal year 2019’s revenue. The Dublin based company announced its plans of acquiring Companion Medical, the manufacturer of InPen. InPen is the only U.S. FDA cleared smart insulin pen system combined with an integrated diabetes management app which possesses the capability to calculate the dose for the user. Earlier in June 2020, FDA had cleared expanded pediatric use for InPen. The terms remain undisclosed, but the deal is anticipated to close in this quarter.
Medtronic plans to synergize both companies’ assets to provide diabetic patients with a device to help them make better dosing decisions. It will focus on optimizing multiple daily injection (MDI) therapy and leveraging AI solutions to develop a device that provides dosing advice based on meal intake. The previous mergers and acquisitions, including nutrition analytics firm Nutrino and Klue developer of meal detection software, will lay a foundation for designing algorithms utilizing deep data science and AI for Medtronic diabetes group’s portfolio expansion. The deal focuses on developing technology for automation of dosing irrespective of the insulin delivery used.
Continuous glucose monitoring (CGM) has been a space dominated by Dexcom and Abbott specialized products, while Insulet and Tandem have been leading the insulin pump market. Deals to combine different assets to develop superior products have been increasing even during the pandemic. Abbott partnered with Tandem Diabetes Care, integrating the latter’s insulin delivery systems with Abbott’s CGM technology. Through the current acquisition, Medtronic would be targeting the diabetes populace who do not prefer to use a pump but would instead inject themselves, thus providing more options for insulin delivery technology.