The Korea-based company develops the EOPatch — a tubeless, wearable and fully disposable insulin delivery device.
EOFlow was at one point set to be acquired by Medtronic for $738 million last year. However, Medtronic called the deal off in December 2023, citing “multiple breaches” to their acquisition agreement. Now, it faces another hurdle from a different diabetes technology giant.
Shares of EOFlow fell about 30% today on the back of the disclosure of the lawsuit, plus the company’s effort to raise millions.
In a legal filing in Korea, the company listed an offering of nearly 82.3 billion Korean Won, equal to about $61.5 million. According to a report in the Korea Biomedical Review, investors reacted poorly to the fundraising effort as the company plans to use a significant amount of the proceeds for operating expenses and debt repayment. The report said shareholders want funds to go toward new investments to help the stock price grow.
More on the EOFlow-Insulet legal battle
On the legal front, the company faces more challenges from Insulet, with whom it has battled in the past, too. Insulet previously filed a patent suit against EOFlow’s German distribution partner, leading to the suspension of sales in March 2023.
EOFlow and Insulet also have ongoing litigation in the U.S., with a federal court of appeals in June concluding that Insulet’s arguments that EOFlow utilized trade secrets from the Acton, Massachusetts-based patch pump maker. The court lifted a stay of an October 2023 preliminary injunction as the companies face further proceedings on that front.
The latest disclosure from EOFlow outlines Insulet’s claims of patent infringement in Europe. Insulet seeks to stop the sale of EOPatch in Unified Patent Court (UPC) member countries.
EOFlow plans to defend itself against all claims, with a hearing set for October.
