Medtronic backs out of $738M acquisition due to ‘multiple breaches’
Medtronic has terminated its agreement to acquire EOFlow, a South Korean healthcare technology company known for its wearable insulin patches, for $738 million. The deal was originally announced back in May 2023.
Medtronic said in a statement to Cardiovascular Business that the change of heart is a result of “multiple breaches” by EOFlow. No specific details were provided.
EOFlow’s primary asset is the EOPatch, a waterproof, tubeless and fully disposable insulin patch used in tandem with a smart phone app. When the EOFlow acquisition was first announced, Medtronic said it would immediately begin working to secure regulatory approval in the United States for the EOPatch.
“We're excited to introduce a differentiated wearable patch option to provide more patient choice and drive further innovation for those who want to use technology to make living with diabetes easier,” Que Dallara, executive vice president and president Medtronic’s diabetes division, said at the time. “We look forward to expanding our offerings to participate in the patch pump market and enabling those customers access to our seamless ecosystem of support.”
Now, however, the deal is off.
“When we announced our intent to acquire EOFlow, we shared that we’re taking multiple shots on goal to help address unmet patient needs,” Medtronic said in its statement. “We continue to advance our organic efforts and we remain committed to bringing a patch pump to market that integrates our most advanced continuous glucose monitoring platform and clinically proven Meal Detection Technology algorithm.”
Insulet, a major player in the wearable insulin device market, sued EOFlow in August and accused the company of copying Insulet’s technology. It seems likely this ongoing conflict is a primary reason the $738 deal was canceled, but Medtronic has not publicly commented either way.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.