ARTICLE SUMMARY:
The diabetes device market is at a crossroads. Strong demand for continuous glucose monitors, automated insulin delivery systems, and other “smart” offerings such as pens and apps is driving double-digit revenue growth while at the same time, competitive pressures and the potential for GLP-1 headwinds are infusing some uncertainty into the marketplace. Companies are seeking an edge in this climate, and acquisitions, IP battles, and other market bolstering efforts are all part of the game.
As demand grows for continuous glucose monitors (CGMs), automated insulin delivery systems (AIDs), and other high-tech solutions designed to help simplify diabetes management and improve glucose control, diabetes device companies are scurrying to gain an advantage, whether by acquisition, partnering, or in-house efforts.
The insulin pump market is a case in point. Recent acquisitions of small patch-pump companies by Medtronic (which is acquiring EOFlow) and Tandem Diabetes Care (which earlier this year acquired AMF Medical) presumably were prompted in large part by Insulet’s remarkable success over the past year with Omnipod 5 (O5), the first patch-pump AID system to reach the US market. (See “Diabetes Devices: All Eyes on Patch Pumps,” MedTech Strategist, January 19, 2023, and “As Insulin Pump Options Grow, Usability Is Key,” MedTech Strategist, August 1, 2023.) Both Medtronic and Tandem are major players in the tethered (durable pump) AID market, but neither was openly pursuing the patch-pump opportunity until Insulet’s success became clear.
Now, with future competition on the horizon, Insulet is doing all it can to leverage its first-to-market advantage and protect its IP. In August, the company filed suit against EOFlow, the patch-pump company being acquired by Medtronic, alleging that EOFlow used trade secrets stolen from Insulet to develop its EOPatch device.
