Ypsomed announced today that it agreed to sell its pen needle and blood glucose monitoring (BGM) businesses to Medical Technology and Devices (MTD).
With the transfer of these businesses, Ypsomed plans to focus its diabetes care business on insulin pumps. Specifically, it looks to the further development and marketing of the mylife Loop automated insulin pump solution.
As part of its growth strategy, Ypsomed expects to invest more than $110 million in the next four years to expand autoinjector manufacturing capacity.
Ypsomed’s continued focus on insulin pumps extends to its Solothurn, Switzerland site, which is where it is expanding manufacturing. In addition to the added capacity, the company wants to convert the space from selling the businesses for an additional injection molding shop facility. This move doubles the tool capacity available to date and generates dozens of new jobs.
The company said in a news release that it plans to support a reliable transition to ensure pen needle supply amid the business sale. During the transition, the company intends to continue producing pen needles as a contract manufacturer while providing certain services. It expects the production equipment to gradually move to MTD sites by mid-2025.
Ypsomed expects to close the transaction this summer.
“We are proud of our long tradition in the production and distribution of pen needles in over 40 countries and our contribution to a better life for people with diabetes and other chronic conditions,” CEO Simon Michel said. “I am convinced that MTD will successfully integrate our pen needle and BGM products into their existing portfolio. At Ypsomed Diabetes Care, we are now fully focusing on our insulin pump solutions.”
