Medtronic has entered into a set of definitive agreements to acquire EOFlow, 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."
Pursuant to share purchase agreements (SPA) with Jesse J. Kim (CEO) and Luis Malave (President), Medtronic will acquire all of their shares in EOFlow at a price per share of KRW 30,000. Pursuant to a share subscription agreement (SSA) with EOFlow, Medtronic will acquire new shares at a price per share of KRW 24,359 to fund EOFlow's ongoing operational and research and development requirements. Medtronic will also undertake a public tender offer to acquire up to all outstanding public shares at a price per share of KRW 30,000. The public tender offer will be subject to a minimum condition such that after the closings under the SPA, SSA and the public tender offer, which will occur on the same day, Medtronic will hold at least a majority of the shares outstanding on a fully diluted basis. With these transactions, Medtronic intends to acquire all outstanding shares in EOFlow and delist the company.
