Ypsomed announced today that it successfully completed the sale of its diabetes care business to TecMed AG.
Burgdorf, Switzerland–based Ypsomed in April announced its plans to sell the business to help focus on strengthening its position in the subcutaneous self-injection market. TecMed — also based in Burgdorf — can now add Ypsomed’s insulin delivery technology to its portfolio. (The business is one of the largest diabetes technology units in the world — see our full list HERE.)
Swiss entrepreneur Willy Michel, who founded Ypsomed, controls TecMed. His son, Simon Michel, is CEO of Ypsomed. Included in the sale are the relevant subsidiaries of Ypsomed Diabetes Care and its patch pump development activities. The deal had an overall value of approximately $517.7 million (CHF 420 million).
“This is a strategic milestone for Ypsomed as it refocuses on its market-leading position in subcutaneous self-injection solutions for pharmaceutical and biotech companies,” Ypsomed said in a news release. “The company also confirms the usual transitional service agreements and certain contract manufacturing services will remain in effect following the transaction closing, ensuring continuity of services and a smooth transition.”
More about TecMed moving forward with the Ypsomed diabetes care business
When it announced the planned sale, Ypsomed said TecMed had a “clear vision in diabetes care” that reinforces stability for all stakeholders. It plans to combine the Ypsomed mylife Loop tube pump system, which includes the mylife YpsoPump and automated insulin delivery solution CamAPS FX, with its own patch pump program.
The companies are also expecting to offer their pump system with Abbott’s future dual glucose/ketone sensor.
TecMed seeks to establish itself as a global leader in diabetes care, focusing on insulin infusion systems. The combined company will have its new headquarters in Burgdorf with working space for around 300 employees. Approximately 200 employees currently working in Solothurn, Switzerland, are expected to move to Burgdorf later this year. Ypsomed says this move frees up space for growth in its own core business.
Following the sale, Ypsomed Diabetes Care Chief Business Officer Sébastien Delarive now becomes CEO of TecMed. Current CEO Patrick Schär moves to the post of chief corporate services officer.
Schär says Ypsomed’s experience in insulin pump therapy sets up TecMed for the future launch of its patch pump. The company joins a range of outfits looking to rival leader Insulet with their own patch systems, including Medtronic, Beta Bionics and Tandem Diabetes Care, who are developing their own. PharmaSens and SiBionics also recently unveiled their own entry, an all-in-one device.
