Medtronic to acquire wearable insulin patch maker EOFlow
Acquisition will expand company's ability to serve more people living with diabetes around the world within one seamless Medtronic ecosystem of support
DUBLIN and SEONGNAM, South Korea, May 25, 2023 /CNW/ -- Medtronic plc (NYSE:MDT), a global leader in healthcare technology, today announced it has entered into a set of definitive agreements to acquire EOFlow Co. Ltd. (KOSDAQ: 294090), manufacturer of the EOPatch® device — a tubeless, wearable and fully disposable insulin delivery device. The addition of EOFlow, together with Medtronic's Meal Detection Technology™ algorithm and next-generation continuous glucose monitor (CGM), is expected to expand the company's ability to address the needs of more individuals with diabetes, no matter where they are in their treatment journey or preference for how they want their insulin delivered.
"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," said Que Dallara, EVP & President, Medtronic Diabetes. "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."
The EOPatch® device, which features a proprietary microfluidic technology designed to deliver insulin with high accuracy and reliability while minimizing the risk of insulin occlusion, is 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. Upon closing of the transaction, Medtronic will work quickly to integrate the EOPatch® device with its next-generation sensor and clinically proven 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."
To the extent that all the public shares participate in the tender offer, the 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 subject to the satisfaction of the minimum tender condition and certain customary closing conditions, including receipt of required regulatory clearances.
Medtronic's financial advisor for the transaction is JP Morgan Securities LLC, with Kim & Chang and Ropes & Gray LLP acting as legal advisors. EOFlow's financial advisor is Goldman Sachs & Co. LLC, with Bae, Kim & Lee LLC acting as legal advisor.
About EOFlow (www.eoflow.com)
About Medtronic Diabetes (www.medtronicdiabetes.com)
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.
EOPatch® is a registered trademark of EOFlow Co., Ltd.
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SOURCE Medtronic plc