Medtronic to acquire South Korean medical device company EOFlow
Ireland-based healthcare technology company Medtronic has announced an agreement to acquire EOFlow, a South Korean medical device company, for a total consideration of KRW 971 billion ($738 million).
This acquisition marks Medtronic’s move to expand its capabilities in addressing the needs of individuals with diabetes.
South Korean medical device innovation in diabetes care
Founded in 2011, EOFlow specializes in manufacturing a tubeless, wearable, and fully disposable insulin delivery device called EOPatch. The slim-profiled device is designed to be discreet and easy to use, with the patch being fully disposable and suitable for wearing on various parts of the body.
With the addition of EOFlow to its portfolio, Medtronic aims to enhance its ability to cater to a broader range of individuals with diabetes, regardless of their treatment preferences. Combining EOFlow’s EOPatch device with Medtronic’s Meal Detection Technology algorithm and next-generation continuous glucose monitor (CGM) is expected to provide enhanced solutions for individuals with diabetes.
The wearable insulin delivery device EOPatch, which is one of the advancements in insulin delivery technology, features a proprietary microfluidic technology that ensures accurate and reliable insulin delivery while minimizing the risk of insulin occlusion. It 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 phones.
Medtronic to acquire EOFlow to expand diabetes care solutions. Photo courtesy of Bobak Ha’Eri/Wikimedia Commons/CC-By-SA-3.0.
EOPatch integration with MiniMed 780G system
Following the completion of the acquisition, Medtronic plans to swiftly integrate the EOPatch device with its MiniMed 780G system, incorporating its clinically proven Meal Detection Technology algorithm.
This integration will offer Medtronic customers a comprehensive range of solutions, including smart multiple daily injections (MDI), tethered insulin pumps, and wearable insulin patch technologies, seamlessly integrated with a single CGM platform.
Commenting on Medtronic acquisition of EOFlow, Que Dallara — Medtronic Diabetes EVP and President said: “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.
“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.”
Medtronic will acquire all the shares of EOFlow from CEO Jesse J. Kim and the company’s president Luis Malave through share purchase agreements (SPA) at a price per share of KRW 30,000. Additionally, Medtronic will acquire new shares through a share subscription agreement (SSA) with EOFlow at a price per share of KRW 24,359 to support EOFlow’s ongoing operational and research and development requirements.
Jesse J. Kim — EOFlow CEO and founder, commenting on Medtronic acquisition of EOFlow, said: “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.
“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.”
The acquisition is expected to close in the second half of calendar year 2023, subject to the satisfaction of the minimum tender condition and customary closing conditions, including regulatory clearances.
Upon completion, Medtronic will further strengthen its position in the diabetes care market, offering advanced and integrated solutions to improve the lives of individuals with diabetes worldwide.