Abbott and Medtronic Forge Strategic Alliance in Diabetes Tech Amid MiniMed IPO Filing

Aug 08, 2024 17:35 CST Updated 17:36

Abbott

Provider of Health Diagnostic Products and Health Diagnostic Management Solutions

Medtronic

Medical Device Manufacturer

Medtronic(NYSE:MDT) today announced that its Simplera Continuous Glucose Monitor (CGM) has received FDA approval and is now officiallyAbbott Partners withDeveloping New Diabetes Technology. This marks another enhancement to Medtronic's CGM product portfolio.

FDA Approved, Strong Counterattack

This disposable CGM is designed for simplicity, allowing for easy use in just two steps, making it particularly suitable for diabetic patients who require multiple injections. The new Simplera CGM surpasses the existing Guardian 4.Half the size, no need to use tape, and can be used withInPen Smart Insulin PenSeamless integration provides real-time, personalized dosing guidance to simplify diabetes management. This CGM received CE certification on September 21, 2023, and was launched in phases at the 59th Annual Meeting of the European Association for the Study of Diabetes (EASD) held from October 2-6, 2023.

In the CGM field, Medtronic has not achieved any substantial breakthroughs and holds no competitive advantage compared to the traditional leaders, Abbott and Dexcom. However, this time, Medtronic aims to compete with the established players by launching a new generation of CGM—Simplera. To make Simplera competitive, it will be seamlessly integrated with the InPen smart insulin pen.Make insulin pens smarter and personalized, providing patients with personalized services.

Powerful Combination, Breaking Tradition

Competitors are also the best partners. Medtronic and Abbott, the world's two largest medical technology companies, are usually seen as fierce rivals in the diabetes care sector. However, they have now established a new partnership and are jointly developing a new type of CGM. This monitor will utilize Abbott's own...FreeStyle LibreSensor, and specifically withMedtronic's Smart Insulin Delivery SystemUsed in conjunction with software. This collaboration covers Automated Insulin Delivery (AID) and Multiple Daily Injection (MDI) systems, with the final product being exclusively sold by Medtronic. The two companies aim to improve the global utilization of CGM devices, providing essential resources for individuals with Type 1 and Type 2 diabetes.

Executive Vice President of Medtronic and President of the Diabetes DivisionRepresentation"The partnership with Abbott enables us to expand the use of advanced automated insulin delivery and smart MDI systems, which can provide top-tier therapeutic outcomes for CGM."。 ”

Executive Vice President of Abbott's Diabetes Care BusinessSaid: "This collaboration combines two of the world's leading blood glucose sensing technologies and insulin delivery technologies. Abbott's CGM technology has set the standard for accurate, convenient, easy-to-use, and reliable continuous glucose monitoring. By connecting this CGM, specifically designed for Medtronic's advanced insulin delivery systems and algorithms, people can reduce their concerns about diabetes and spend more time living their lives."

The Diabetes Sector Reignites with Fierce Competition

Why is this collaboration between Abbott and Medtronic so important?

According to a study published in The Lancet, it is predicted that by 2050, more than1.31 billion peoplePatients with diabetes, the increase in prevalence is expected to be driven by a rise in type 2 diabetes. By 2045, global healthcare spending related to diabetes is projected to increase to$1.054 trillionThe International Diabetes Federation (IDF) predicts that by 2045, the global population will increase by 20%, and the number of people with diabetes will also increase.46%。

Global CGM Market Landscape:

Rapid development, Abbott as the absolute leader

East Wu Securities Research InstituteThe data shows:The global blood glucose monitoring device market size was $5.7 billion in 2020, with a 5-year compound annual growth rate (CAGR) of 28%. It is projected to maintain a CAGR of 20% over the next decade, remaining in a phase of rapid growth.

In terms of the overall situation,The global CGM market is mainly controlled by Abbott, Medtronic, and Dexcom.Among them, Abbott's market share is over 50%, Medtronic's is less than 10%, and Dexcom's market share is over 30%. These three companies control 90% of the market share. Other competitors face fierce competition. It is necessary to break through barriers and enter the high-end demand market.

Abbott's CGM sensor can monitor patients' blood glucose levels in real time, while Medtronic's insulin delivery system can automatically adjust the amount of insulin delivered based on the monitoring results. This collaboration combines these two technologies to achieve automatic regulation of blood glucose levels. In the future, daily life for diabetes patients will become much easier and more convenient.

From a market perspective, Medtronic was once the only company among the CGM giants to possess a CGM + insulin infusion closed-loop system. However, limited by the performance of its CGM, the user experience drew significant complaints from the patient community. The opportunity to expand market share through the closed-loop system was missed due to its own limitations.The launch and approval of Simpler this time is a signal of Medtronic's counterattack.

Applying CGM from medical use to the broader health field is Medtronic's goal, which aligns with Abbott's strategy. Thus, the two parties quickly reached a cooperation agreement.

Looking at Dexcom, one of the three giants, it also announced at the 2023 American Diabetes Association (ADA) annual scientific conference that it would target type 2 diabetes patients who have not received insulin treatment.Developing a New Generation of SensorsIt can not only be used to monitor blood glucose levels but also track the impact of diet, medication, and exercise on the human body. The new sensor is expected to hit the market in 2024, with a designed service life of 15 days, surpassing G7's 10 days, and will also come with a brand-new companion app.

This competition, driven by health insurance and involving the three giants in a fierce internal rivalry over CGM, continues. Whether it is expanding CGM from the traditional Type 1 diabetes market to the broader Type 2 diabetes market, or Medtronic's collaboration with its competitor Abbott, the aim is to unlock a larger market space. For patients, the endpoint of this competition,It is a precise and personalized, yet concise and easy-to-use solution.。

China CGM Market Landscape:

Rapid Growth, Abbott Takes the Lead

Dongwu Securities Research InstituteData shows：In 2020, the CGM market size in China was 100 million yuan, with a compound annual growth rate over five years.73%A compound annual growth of 34% over the next decade, reaching an estimated 2.6 billion yuan by 2030.

In terms of market landscape, Abbott remains the leader in the CGM market, with a market share reaching75%, while Medtronic accounts for 10%, Meqi for 5%, and others occupy10%Abbott occupies an absolute leading position.

From the enterprises that have already been approved for CGM, there are a total of13 companiesEnterprise, the earliest approved domestic leader Meqi Medical occupies the absolute leading position among domestic enterprises.

NMPA data shows: In the CGM market landscape in China, Abbott holds75%, basically speaking, there are not many competitive players in China. The largest market share in China is held by Medtronic, with a domestic market share of5%In recent years, companies that have received approval for CGM include Microtech Medical and Sinocare. In terms of industry growth, the global CGM market has increased by 28% year-over-year, while in China it has grown by 73% year-over-year, with the industry maintaining rapid growth. As CGM accounts for 25% of the blood glucose meter market,There is a very large space for substitution in the future.

▲Source of the article:Medical Device Innovation Network

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