Medtronic announced this week that it terminated its $738 million agreement to acquire EOFlow, a maker of insulin patch pumps. The medtech giant cited “multiple breaches” of terms in the agreement as the reason behind the decision.
According to the Business Korea report, Jae-jin said the company itself terminated the acquisition contract with Medtronic.
He said both sides tried to find a mutual agreement over the past few weeks, citing “fundamental differences in perspective.” The CEO said Medtronic views ongoing legal disputes over IP with patch pump leader Insulet as “uncertain.”
However, Jae-jin claims “significant mutual interest” still remains between the companies, according to the report. He says Medtronic plans to closely monitor EOFlow’s situation with Insulet.
More on the EOFlow-Insulet situation
BTIG analysts Marie Thibault and Sam Eiber highlighted several legal wins for Insulet against EOFlow in a report. That includes a temporary restraining order issued in August. The U.S. District Court for the District of Massachusetts issued a preliminary injunction in October, too.
They wrote that Insulet filed a patent suit against EOFlow’s German distribution partner. That led to the suspension of sales in March 2023. The analysts maintain a “Buy” rating for Insulet in the wake of the news as the company remains atop the patch pump market.
“We think this update solidifies Insulet’s monopolistic position in the insulin patch pump space and highlights the strength of its patent portfolio,” they wrote. “We believed [Insulet’s] large headstart in patch pumps, its integration with CGMs, and compelling business model create a significant competitive advantage versus potential new entrants.”
EOFlow already launched its EOPatch insulin delivery system in Korea and Europe. The company submitted the insulin delivery device for U.S. FDA clearance in January. EOFlow already has FDA breakthrough device designation on a wearable, integrated artificial pancreas. The disposable device features a glucose monitoring sensor, insulin pump and automated insulin delivery algorithm.
According to Business Korea, Jae-jin says the EOFlow legal team believes it has an advantage in the appellate review of the injunction filed against the company. He said it involves “legal disparities” and three “well-versed” federal judges have it under review.