Abbott (NYSE:ABT) said today that it has entered into an agreement with Tandem Diabetes Care (NSDQ:TNDM) to combine the former’s glucose-sensing technology with the latter’s insulin delivery systems.
The news comes one day after Abbott announced a partnership with Omada Health to pair Abbott’s FreeStyle Libre continuous glucose monitoring system with Omada’s digital care program.
Tandem designed its t:slim X2 pump to monitor glucose without fingersticks. It features a touchscreen, rechargeable battery, wireless technology and USB connectivity. Tandem said the pump is 38% smaller than other insulin pumps and holds up to 300 units of insulin. It was the first insulin pump to win FDA clearance in the alternate controller enabled (ACE) infusion pump category. Last month, a study revealed that it showed a 45% relative risk reduction in hypoglycemia and a 71% relative risk reduction in hypoglycemic events.
The t:slim X2 pump’s controls allow it to communicate with compatible devices like Abbott’s FreeStyle Libre, which could offer patients the option to select tools and design their diabetes management specifically for their own needs. The companies are currently discussing a financial agreement for device integration, according to a news release.
Shares of TNDM were up 6.9% at $60.54 per share in mid-morning trading today, while shares of ABT were up 2.7% at $81.97 per share.
“To help customers fully realize the potential of the latest advancements in diabetes technology, we’re ensuring our products have interoperability, creating a cohesive ecosystem where people with diabetes can manage their condition across devices from us and other companies seamlessly,” Abbott SVP of diabetes care Jared Watkin said in the release. “By bringing together Abbott’s and Tandem’s leadership and expertise, we can provide new ways for people to manage their diabetes that are impactful and can integrate easily into their daily lives, especially people who rely on insulin pumps.”
“The FDA’s new interoperable designations for the various components of automated insulin delivery systems are making integrations of advanced technologies more straightforward, and we are looking forward to exploring these possibilities with Abbott,” added Tandem president & CEO John Sheridan. “Our companies share a fierce dedication to helping expand the available treatment options for the diabetes community so that more people can experience the benefits of automated insulin delivery systems, using a combination of devices they feel best meets their individual needs.”
Abbott’s agreement with Omada Health is designed to provide real-time glucose data and actionable information for patients as they manage their Type 2 diabetes.
The FreeStyle Libre is designed to monitor glucose levels with a small sensor on the back of the upper arm that can be scanned with a handheld reader or smartphone. It provides real-time glucose readings and allows patients to dose insulin based on the results, eliminating the need for fingersticks.
Abbott said Omada Health will offer the integrated solution to employers and health plans, as the companies’ analytics set out to bring patients personalized digital care from their smartphones. Those patients should be able to track their progress and receive recommendations through online chats on Omada’s app.
“The mission of Omada Health has always been to empower meaningful, sustainable behavior change for those individuals living with Type 2 diabetes and other chronic conditions,” Omada co-founder & CEO Sean Duffy said in a news release. “Partnering with Abbott to give individuals access to FreeStyle Libre as part of the Omada program will deliver a unique combination of personalized human coaching and technology-enabled care to support those goals.”
“We’ve seen how FreeStyle Libre transforms lives through its proven track record in improving health outcomes, and our goal is to find new ways for even more people with diabetes to benefit from this technology,” added Watkin. “Through this collaboration, we’re creating a personalized care experience that combines Abbott’s leading CGM technology with Omada Health’s professional coaching and digital platform – giving people with Type 2 diabetes actionable information that leads to better health.”
