Two major insulin pump makers — Medtronic (NYSE:MDT) and Tandem Diabetes Care (NSDQ:TNDM) — announced today that they’ve inked a non-exclusive patent cross-license agreement related to diabetes treatment tech.
The companies said the agreement will allow them to focus on innovation while avoiding the distraction of potential legal disagreements.
The deal could be but another example of how medical device companies are trying to avoid unnecessary costs — including potentially money-draining litigation and IP cases — amid the COVID-19 pandemic and resulting recession.
The cross-license agreement involves Medtronic and Tandems’ existing products, as well as new products for at least the next five years. The two companies also promised not to clone each other’s products. No money is changing hands as part of the deal.
Further terms of the deal were not disclosed.
The news comes nearly two weeks after Abbott (NYSE:ABT) and Tandem Diabetes Care completed their agreement to combine the former’s glucose-sensing technology with the latter’s insulin delivery systems.