DreaMed Diabetes Files IPO Prospectus: AI-Powered Precision Insulin Dosing Gains Momentum with Medtronic Partnership

Type 1 diabetes is a chronic disease characterized by the pancreas producing little or no insulin, resulting in impaired glucose breakdown and absorption. In the absence of insulin, blood glucose accumulates in the bloodstream, leading to life-threatening complications.

More than 90 million people worldwide are affected by type 1 diabetes. Controlling blood glucose levels and concentrations is the primary means of preventing diabetic complications, with insulin injection being the mainstay of therapy for glycemic control. Despite significant advances in insulin therapy and blood glucose monitoring, most patients still fail to achieve optimal glycemic control and face challenges such as the burden of costly, lifelong treatment.

In 2016, the global market size for glucose monitoring devices and related products reached $12.1 billion, rising to $12.8 billion in 2017, and is projected to reach $20.7 billion by 2022.

DreaMed Diabetes, founded in 2014 and headquartered in Petah Tikva, Israel, is a medical company dedicated to developing intelligent therapeutic solutions for type 1 and type 2 diabetes.

Eran Atlas, Founder and CEO of DreaMed, stated, “DreaMed’s mission is to simplify treatment, enhance the patient experience, and provide personalized diabetes solutions for patients and healthcare providers. We have developed the only regulatory-approved technology for diabetes that intelligently adjusts insulin therapy based on continuous glucose monitoring data. Therefore, we believe it will serve as a vital partner for physicians and patients in achieving optimal glycemic control.”

Influenced by daily activities, each patient responds differently to changes in insulin dosage. Leveraging years of experience, DreaMed Diabetes’ medical team has developed a solution that integrates artificial intelligence into this process: the MD-Logic Artificial Pancreas Algorithm.

MD-Logic technology analyzes data such as insulin dosage, blood glucose levels (sensor readings, finger-prick measurements), and dietary or carbohydrate intake obtained from other devices. Its fundamental principle involves employing fuzzy logic and adaptive learning algorithms to simulate the evaluation process of endocrinology experts. By understanding and analyzing each category of data, it ultimately provides corresponding solutions. The entire process is faster and more comprehensive than manual analysis.

MD-Logic technology can be used by doctors and patients in various forms:

MD-Logic is the core technology used in DreaMed’s two flagship products, Advisor Pro and Glucositter, enabling intelligent, personalized diabetes treatment guidance and recommendations.

DreaMed offers a range of diabetes-related products, among which GlucoSitter is the first artificial pancreas system to receive CE certification and launch in Europe, capable of continuously monitoring blood glucose levels and precisely regulating insulin delivery. GlucoSitter has been licensed for sale by Medtronic, a global leader in medical device manufacturing.

GlucoSitter is an artificial insulin system designed to regulate blood glucose levels, with its core technology being the MD-Logic Artificial Pancreas Algorithm. This system connects a glucose sensor and an insulin pump via a computer-controlled program. It analyzes real-time blood glucose data obtained from dynamic glucose sensors to guide the insulin pump in delivering precise doses of insulin, thereby maintaining glycemic balance. In practice, the software continuously monitors blood glucose levels and accurately calculates the timing and method for adjusting insulin delivery.

The Convenience of GlucoSitter

In the past, patients needed to prick their fingers to obtain blood samples and use glucose meters to measure blood glucose levels. With the advancement of new technologies, continuous glucose monitors (CGMs) now enable patients to obtain approximately 288 blood glucose readings throughout the day without the need for finger-prick blood sampling. However, while CGMs offer convenience, they also present new challenges for physicians: doctors must review vast amounts of glucose data to formulate the most appropriate treatment plans for their patients.

To address this challenge, DreaMed’s product, Advisor Pro, leverages fuzzy logic algorithms to collect and analyze extensive data from various insulin pumps, blood glucose meters, and patients’ dietary intake, thereby assisting physicians in formulating or adjusting insulin regimens and accelerating their workflow.

Advisor Pro leverages cloud-based artificial intelligence to simplify the complexity of diabetes data, transforming routine data collection into credible guidance and recommendations.：

1) Start by seamlessly integrating existing data sources, leveraging third-party diabetes management systems to transmit data to the cloud, thereby providing Advisor Pro with comprehensive actionable data analytics (including glucose readings: sensor readings, fingerstick blood glucose measurements, insulin dosage records, and dietary/carbohydrate intake data).

2) Collecting feasibility data is merely the first step for Advisor Pro, which then employs proprietary algorithms—combining machine learning and adaptive technologies—to undergo continuous deep training, enabling it to learn and understand each patient, including their unique habits, needs, and specific glucose/blood sugar data.

3) What Does Advisor Pro Bring to the Diabetes Industry? ——Automatically Provide Insulin Therapy and Blood Glucose Concentration Correction Recommendations for Different Individuals. As a professional partner to healthcare providers, Advisor Pro delivers continuous, rapid, and on-demand treatment recommendations.

a. For physicians：

• Real-time, continuous, and automated blood glucose level analysis results;

• More efficient data analysis allows for more time to be spent on patient diagnosis and treatment;

• Cloud-based remote monitoring and treatment adjustment;

• User-friendly data management system;

• Editable and Shareable Data Reports.

  
  

b For patients with diabetes：

• Tailored treatment plans for patients;

• Systematic patient self-management recommendations;

• Expand access to diabetes expertise and remote consultations;

• Less time spent in the doctor's office;

• Rapid and accurate insulin regulation;

• Obtain easy-to-understand data reports;

• Improve Your Own Blood Glucose Control System.

  
  

Advisor Pro is still in the testing phase, and DreaMed has stated that the company plans to launch the product in Europe this summer.

Eran Atlas: “DreaMed has developed algorithms that leverage years of clinical experience to provide real-time, optimal insulin therapy regimens for patients. Based on this, we have successively attracted Medtronic, Norma Investments, and”OurCrowdthe attention of industry leaders such as equity crowdfunding companies.”

On April 7, 2015, DreaMed secured $2 million in seed funding from Medtronic. Additionally, DreaMed has signed an exclusive development and licensing agreement with Medtronic to integrate DreaMed’s technology into products embedded within Medtronic-manufactured insulin pumps. Reportedly, this deal helps Medtronic capture a larger share of the industry, as patients reliant on insulin account for half of the global diabetes treatment market.

On July 25, 2016, DreaMed secured $3.3 million in venture financing, which will be primarily used for further research on Advisor Pro.

Steve Bubrick, Chief Business Officer of DreaMed Diabetes, stated: “Patients with diabetes strive every day to optimize their insulin therapy in accordance with the recommendations of their diabetes care teams. Advisor Pro offers significant convenience for both patients and physicians. With increased funding, we plan to expand the application of the Advisor Pro platform among physicians and patients with diabetes who rely on injectable medications.”

In February 2016, DreaMed stood out from 70 applicants, including leading multinational corporations, to become a recipient of the Leona M. and Harry B. Helmsley Charitable Trust’s “Type 1 Diabetes Decision Support Initiative,” securing $3.4 million in funding. This funding was used to collaborate with Glooko, a developer of mobile and web-based applications for diabetes management, to enroll 112 patients in clinical studies across multiple medical centers in the United States, Europe, and Israel.

This study first adjusted blood glucose levels within a predetermined range to evaluate the intervention efficacy of Advisor Pro. The trial results are expected to be announced in late 2018, after which Advisor Pro is poised to receive certification from the U.S. Food and Drug Administration (FDA).

Currently, three clinical trials conducted at the Schneider Children's Medical Center in Israel have demonstrated that the treatment recommendations proposed by Advisor Pro are nearly identical to the insulin therapy regimens formulated by medical experts.

Approximately 35% of patients with type 1 diabetes worldwide choose to use insulin pumps. Glooko’s diabetes platform enables data managers to download data from their diabetes monitoring devices and ultimately provide this data to clinicians via a secure cloud.

Following the integration of DreaMed’s MD-Logic into the Glooko platform, insulin pump data can be analyzed and evaluated to provide personalized recommendations for pump settings, such as the insulin-to-carbohydrate ratio. These recommendations are then delivered to clinicians via Glooko’s management application, which also enables them to manage and adjust treatment regimens.

The partnership with Glooko is part of DreaMed’s overall strategy, with future collaboration encompassing the generation, collection, and storage of patient data, as well as the provision of real-time glucose balance data and behavioral guidance.