Tandem Diabetes Care acquires Swiss insulin pump developer AMF Medical
Tandem diabetes care announced on Wednesday that it had reached an agreement to acquire AMF Medical SA, a Swiss company developing a patch insulin pump.
The Sigi Patch Pump, which is not yet commercially available, is a refillable patch that uses pre-filled insulin cartridges. The company said it would be compatible with automated insulin delivery systems.
The deal includes an earlier strategic investment of 8 million Swiss francs ($8.7 million), already paid in the third quarter, and 62.4 million Swiss francs ($67.6 million) in cash. Under the agreement, Tandem would also pay up to 129.6 million Swiss francs ($140.4 million) based on achievements such as meeting development milestones and obtaining FDA.
The acquisition is expected to be finalized next month.
“This acquisition supports our commitment to drive growth through innovation because AMF Medical has innovative technology and a shared passion for creating easy-to-use solutions to improve the lives of people with diabetes,” said John Sheridan, president and CEO of Tandem Diabetes Care, said in a statement. “Our portfolio approach to diabetes care is designed to bring the benefits of advanced insulin pump therapy to more people around the world, utilize our expertise in automated insulin delivery technology and data management, and leveraging our business infrastructure to create shareholder value.”
THE GREAT TREND
AMF Medical was founded in 2014. In November last year, the company announced that its Sigi system had received FDA Breakthrough Device Designation.
This is Tandem’s second acquisition announcement this year. In July, the company announced that it had purchased Biomedical Capillarywhich was developing an extended wear infusion set.
In its third quarter results, Tandem reported that its worldwide sales increased 14% to $204.5 million from a year ago. It posted adjusted EBITDA of $9.9 million, compared to $26.9 million in the same period a year earlier.
The company also said it has submitted its Mobi insulin delivery system to the FDA for 510(k) clearance.
“We are committed to expanding our portfolio of diabetes solutions to drive long-term growth and leverage our operations as we continue our work to improve the lives of people with diabetes,” Sheridan said in a statement. a press release at the time.