Medical device makers Abbott and Medtronic unveiled a global partnership that pairs Abbott's continuous glucose monitoring (CGM) sensors with the Medtronic insulin delivery system.
The collaboration will offer an integrated continuous CGM system based on Abbott's FreeStyle Libre sensing technology and Medtronic's automated insulin delivery (AID) and smart insulin pen systems, the companies said Wednesday.
Financial terms of the partnership and timing for commercial availability were not disclosed.
Shares of Abbott rose 1.7% Wednesday morning and Medtronic shares were up about 1.5%.
The deal is a net positive for both companies and strengthens their positions in the diabetes care market, according to RBC Capital analyst Shagun Singh.
In a research note, Bank of America research analysts said the deal gives Abbott the opportunity to sell its CGMs to Medtronic's 700,000 global insulin pump users, including 300,000 individuals in the U.S. market. "This likely adds $100+ million per year growth to Libre and ultimately opens up a $700 million to $850 millin CGM opportunity for Libre that it did not have access to in the past," the BoA researchers wrote. "We think that this deal is very smart for Medtronic and will be accretive to Abbott as well."
It's the latest in a series of Abbott partnerships as part of the company's strategy to streamline diabetes care and integrate with more insulin delivery systems.
Abbott says it now has partnerships with four of the largest companies that develop automated insulin delivery systems, including Omnipod, Tandem, Novo Nordisk's NovoPen and MyLife Loop, to offer more choices to people to benefit from connectivity with Libre technology.
The integration of Abbott's CGM sensor with Medtronic's AID algorithms will enable automatic adjustments of insulin to keep glucose in range. The CGM sensor, designed to work exclusively with Medtronic devices, will be developed by Abbott and sold by Medtronic, the companies said.
AID systems improve health outcomes while reducing the burden of constant decision-making for people with diabetes who use intensive insulin as part of their overall therapy. AID systems can benefit people with both Type 1 and Type 2 diabetes who require multiple daily injections of rapid-acting insulin, currently estimated at more than 11 million people globally.
"This partnership pairs two global leaders in glucose sensing technology and insulin delivery," said Jared Watkin, executive vice president of Abbott's diabetes care business in a statement. "Libre technology has set the standard for accurate, accessible, easy-to-use and reliable continuous glucose monitoring. Connecting this CGM built for Medtronic's insulin delivery systems and algorithms makes it easier for people to spend less time thinking about their diabetes and more time living."
Medtronic's partnership with Abbott will expand access to its automated insulin delivery and smart MDI systems with the most widely used CGM in the world," said Que Dallara, executive vice president and president, Medtronic Diabetes.
"We're committed to simplifying diabetes management and making the transition to automated technology much more seamless for those who wish to achieve more with their diabetes care," Dallara said.
Abbott touts its Libre portfolio of CGM monitoring technology is now used by more than 6 million people in more than 60 countries.