U.S.-based Medtronic plc has announced its withdrawal from a previously agreed deal to fully acquire South Korea’s EOFlow (KOSDAQ: 294090), a developer of wearable insulin pumps. According to a recent SEC filing, the original agreement, signed in May 2023 and valued at up to USD 738 million, included separate share purchase and subscription agreements, as well as a public tender offer contingent on minimum tender conditions and regulatory approvals. Medtronic cited multiple breaches of these terms as the reason for terminating the deal, asserting that no termination fee is owed.
EOFlow is known for its EOPatch insulin delivery system, which integrates a glucose monitoring sensor, insulin pump, and automated insulin delivery algorithm. This product has already received approval in South Korea and Europe and is currently under U.S. review, having earned breakthrough device designation from the FDA.
While the specifics of the “multiple breaches” have not been disclosed, speculation suggests that ongoing legal challenges to the EOPatch’s patent from rival insulin pump manufacturer Insulet may have influenced Medtronic’s decision. These legal disputes have resulted in injunctions against EOFlow’s product in both the U.S. and Germany this year. Medtronic’s SEC filing indicates that the company will continue to develop its own insulin dosing product pipeline, which includes plans for a differentiated patch pump.- Flcube.com
