Abbott and Medtronic Forge Landmark Partnership to Lead the Diabetes Care Market

Aug 09, 2024 11:30 CST Updated 11:30

Abbott

Provider of Health Diagnostic Products and Health Diagnostic Management Solutions

Medtronic

Medical Device Manufacturer

Source of the article:SiYu MedTech

On August 7, 2024, Abbott and Medtronic announced a significant partnership in the field of diabetes technology.

The two companies will integrate Abbott's CGM (Continuous Glucose Monitoring) products with Medtronic's insulin delivery systems through this collaboration. According to the agreement, Abbott will be responsible for developing the sensors, while Medtronic will handle sales. The two companies have not yet disclosed specific details such as the financial terms of the partnership.

In addition, Medtronic's Simplera CGM also received FDA approval in the United States on August 7.

Left: Abbott FreeStyle Libre 3 CGM Right: Medtronic MiniMed 780G

# Cooperation Content

This collaboration aims to integrate Abbott's FreeStyle Libre CGM (FreeStyle Libre 3) product with Medtronic's automated insulin pump (MiniMed 780G) and smart insulin pen (InPen system) to jointly develop a comprehensive system.

The combination of Abbott's CGM with Medtronic's automated insulin delivery algorithm will enable automatic adjustment of insulin, ensuring blood glucose remains within the ideal range.

Abbott Continuous Glucose Monitoring Technology: FreeStyle Libre 3

FreeStyle Libre 3 is a Continuous Glucose Monitor (CGM) that is 70% smaller in total volume compared to the second generation, features a 14-day usage period, high accuracy, and optional high and low blood glucose alarms.

At the same time, this product also developed a smartphone application that automatically receives real-time blood glucose data via Bluetooth. It can directly provide continuous and real-time glucose readings to smartphones and is suitable for diabetes patients aged 4 years and above.

Abbott has partnered with multiple insulin pump manufacturers, and Libre can now connect to automated insulin delivery pumps, such as Tandem's t:slim X2 pump. FreeStyle Libre 2 can be integrated with Insulet's Omnipod 5.

Medtronic's New Generation Automated Insulin Delivery Technology: MiniMed 780G

MiniMed™ 780G is Medtronic's most advanced insulin delivery system, utilizing SmartGuard technology to automatically adjust insulin delivery every 5 minutes, predicting and maintaining blood glucose levels within the target range.

The default target blood glucose range of the product is set to 120mg/dL, but can be adjusted to 110 or 100mg/dL.

In addition, the system is equipped with Meal Detection™ technology, which can effectively prevent postprandial hyperglycemia when users occasionally forget.

Medtronic InPen™ Smart Insulin Pen

InPen™ is a reusable smart insulin pen that uses Bluetooth technology to send dose information to a mobile application.

InPen provides dose calculation and tracking features, helping patients save some mental math work in diabetes management.

Medtronic has been using its own CGMs, such as the Guardian 4 and Simplera platforms, and the company plans to continue using these systems as part of its CGM portfolio.

Jared Watkin, Executive Vice President of Abbott's Diabetes Care division, stated:"Abbott's FreeStyle Libre technology sets the standard for accurate, accessible, easy-to-use, and reliable continuous glucose monitoring."Connect this CGM built for Medtronic's insulin delivery system and algorithm.Patients are expected to reduce the burden of managing their conditions and have more time to enjoy life.”

Que Dallara, Executive Vice President and President of Medtronic Diabetes, stated:"Our collaboration with Abbott can further expand the application scope of automated insulin delivery systems and intelligent multiple daily injection (MDI) systems, allowing more people in need to benefit from smart technology."”

# Medtronic Simplera CGM Approved by FDA

Medtronic's first disposable all-in-one CGM is half the size of its previous CGM. The latest fingerstick-free sensor simplifies the insertion and wearing process, eliminating the need for a belt.

Simplera CGM adopts the latest design, requires no tape, no charging, is more compact in size, and is very easy to wear;
Seamlessly integrated with the InPen smart insulin pen, it enables real-time, personalized dosing guidance, simplifying diabetes management. This feature received the EU CE mark in September 2023.
Can also be used in conjunction with the Simplera Sync, which integrates with the MiniMed 780G automated insulin delivery system;
Very convenient for diabetic patients to use, can be used for multiple daily injections.

# Mutual Benefits

BTIG analysts Marie Thibault and Sam Eiber said that this cooperation news was unexpected, but it would help both parties to explore the diabetes market and maintain a "co-opetition" relationship.

The CGM system developed through this collaboration is only compatible with Medtronic devices. It is expected that the new system will not receive FDA approval or CE certification within Medtronic's current fiscal year (ending May 2025). The earliest possible approval may occur by the end of the 2026 fiscal year, which should be a "win-win" situation for both companies.

Overall, this collaboration benefits both companies as it helps expand their respective user bases while also providing patients with more device options.

Medtronic's move helps retain its existing user base (approximately 700,000 globally) and attract new users who have been conservative about adopting the company’s CGM system.

Analysts also mentioned that for Insulet, the likelihood of its Omnipod patch pump facing significant threats is relatively low. Due to differences in product form and business model, patients who prefer tubing pumps are unlikely to switch to Insulet's Omnipod 5 patch pump, and vice versa.

# Conclusion

Investors reacted positively to the collaboration between Abbott and Medtronic, with both companies' shares slightly rising at Wednesday's close. However, shares of other companies experienced declines to varying degrees: Tandem Diabetes Care closed nearly 15% lower, Dexcom fell about 8%, and Insulet dropped 3%.

What waves will Medtronic and Abbott make in the diabetes care field? We will continue to follow.