Tandem Diabetes Care, Inc. is going international to expand its portfolio of insulin delivery pumps.
On Dec. 13, the San Diego-based Tandem announced it had entered into a definitive agreement to acquire Switzerland-based AMF Medical SA, developer of the Sigi Patch Pump – an ergonomic, rechargeable patch pump that uses pre-filled insulin cartridges.
“This acquisition supports our commitment to drive growth through innovation, as AMF Medical has novel technology and a shared passion for creating easy-to-use solutions to improve the lives of people with diabetes,” said John Sheridan, Tandem Diabetes Care president and CEO.
“Our portfolio approach to diabetes care is designed to bring the benefits of advanced insulin pump therapy to more people worldwide, utilize our expertise in automated insulin delivery technology and data management, and leverage our commercial infrastructure to create shareholder value,” Sheridan added.
Tandem agreed to pay a total 200 million Swiss francs (CHF) – around $215.3 million USD – for AMF and its Sigi pump, which is still under development and not yet commercially available.
Under the terms of the agreement, Tandem will pay CHF 62.4 million at closing, adding to a previous strategic investment of CHF 8 million paid in the third quarter of 2022.
Additionally, Tandem will make contingent earnout payments of up to CHF 129.6 million, in aggregate, payable upon the achievement of certain milestones, including: up to CHF 38.4 million upon the successful completion of key development milestones over the next two years; and up to CHF 91.2 million upon obtaining FDA clearance of the pump in the U.S.
Tandem Chief Strategy Officer Elizabeth Gasser said the AMF acquisition follows a concerted effort by the company to look at the market and see what segments Tandem could grow into as part of a “continuum of planning” for new products to bring to market over the next five years.
“For the treatment of insulin-intensive diabetes, there is no one-size-fits all approach,” she said. “With that in mind, we’ve been following a portfolio strategy here, thinking about how to deliver the right delivery devices to the right segment of the market.”
The Sigi pump offers different features than Tandem’s current t:slim X2 pump and future Mobi pump.
The t:slim X2 utilizes a touch screen; is a tubed infusion sight that offers a diversity of wear modes; and is large capacity, 300-unit pump. The Mobi is screen free, phone controlled and only 200 units, which offers more discretion for users in terms of wear they can wear it on the body.
“With Sigi, what we’re working towards is accelerating our pathway to delivering a ground-up, tubeless pump explicitly designed for on-body wear using a tubeless infusion sight,” Gasser said, adding that the Sigi also has a smaller cartridge, but is prefilled for “ease of use.”
“When you think about them together, you’ve got a variety of interface modes, you got a variety of capacities and you’ve got a variety of infusion sight options that come with the portfolio of pumps there,” she added.
Another attractive feature of the Sigi pump is that it is rechargeable – a feature that Tandem’s market research found resonates strongly with subset of users internationally so the company “made a call not to double down” on a disposable battery model, Gasser said.
“We felt we needed to lean into coming up with a novel and compelling durable option for on-body wear,” she added.
Like all Tandem pump devices, the Sigi will utilize the company’s advanced technological capabilities offering automation, mobile control, and integration with partner company technologies such as Dexcom’s continuous glucose monitoring systems.
“At the end of the day, we’re a company that is committed to delivering insulin therapy management as a system,” Gasser said. “As we expand the device portfolio, we also intend to insure we are plugging the devices into our software ecosystem.”
Tandem Diabetes Care, Inc.
CEO: John Sheridan
Headquarters: San Diego, Sorrento Valley
Business: Insulin delivery devices and technologies
Stock: TNDM (NASDAQ)
Revenue: $204.5 (2022 Q3)
Employees: Over 2,000
Notable: Tandem’s mobile app is the first approved by FDA for Apple and Android mobile devices.