Medtronic Backs Away from EOFlow Deal

Medtronic is backing out of a $738 million deal to acquire EOFlow, a maker of a wearable insulin patch. The company revealed it was terminating the deal in a filing with the SEC.

In the filing, the company notes that it was terminating the deal because of multiple breaches by EOFlow. The termination does not impact Medtronic’s fiscal year 2024 adjusted earnings per share guidance range that the company provided on November 21

The termination of the deal comes shortly after Insulet won a preliminary injunction preventing EOFlow from selling any product developed using trade secrets from it, according to a report from Medtech Dive.

The deal was first announced in May.

Seongnam, South Korea-based EOFlow makes the EOPatch, a tubeless, wearable, and fully disposable insulin delivery device.

The company said the addition of EOFlow, combined with Medtronic's meal detection technology algorithm and continuous glucose monitor, was expected to expand its ability to address the needs of more individuals with diabetes.

The company has been trying to make headway in the diabetes space and recently won CE mark approval for the Simplera, a continuous glucose monitor featuring a two-step insertion process. Medtronic began a phased launch of the product at the European Association for the Study of Diabetes (EASD) 59th Annual Meeting in Hamburg, Germany on October 2-6, 2023.

Earlier this year, the company won FDA approval of the MiniMed 780G system with the Guardian 4 sensor. According to Medtronic, the MiniMed 780G system features the lowest glucose target setting (as low as 100 mg/dL) in any automated insulin pump on the market and one that more closely mirrors the average glucose of someone not living with diabetes. With this setting, the pump will "treat to target" and will automatically deliver basal insulin adjustments and autocorrections to a set target, the company said.