Tandem Diabetes Care, Inc., a global insulin delivery and diabetes technology company based in San Diego has entered into a definitive agreement to acquire AMF Medical SA, developer of the Sigi Patch Pump. Tandem will pay CHF 62.4 in cash and up to CHF 129.6 million upon the achievement of certain milestones.
Founded in 2014, AMF Medical SA is developing the Sigi Patch Pump, an ergonomic, rechargeable patch pump that reduces the burden of managing diabetes through its use of pre-filled insulin cartridges and its compatibility with automated insulin delivery technology. The Sigi Patch Pump is under development and not yet commercially available.
With the acquisition of AMF Medical’s proprietary and disruptive insulin delivery solution Tandem will expand its stype 1 and type 2 addressable market opportunities by adding a pump designed for a segment of people living with diabetes not served by Tandem today. It will accelerate time-to-market for a patch pump in Tandem’s portfolio of technology offerings, further Tandem’s sustainability objectives by offering an additional pump that minimizes the generation of electronic and battery waste, and provide a pathway for channel expansion and increased customer access.
“This acquisition supports our commitment to drive growth through innovation, as AMF Medical has novel technology and a shared passion for creating easy-to-use solutions to improve the lives of people with diabetes,” said John Sheridan, Tandem Diabetes Care president and chief executive officer. “Our portfolio approach to diabetes care is designed to bring the benefits of advanced insulin pump therapy to more people worldwide, utilize our expertise in automated insulin delivery technology and data management, and leverage our commercial infrastructure to create shareholder value.
Tandem Diabetes Care will acquire AMF Medical under the following financial terms of the agreement:
- A previous strategic investment of CHF 8.0 million paid in the third quarter of 2022
- A cash payment of CHF 62.4 million due at closing
- Additional contingent earnout payments of up to CHF 129.6 million, in aggregate, payable upon the achievement of certain milestones, including:
- Up to CHF 38.4 million upon the successful completion of key development milestones over the next two years
- Up to CHF 91.2 million upon obtaining regulatory clearance of an automated controller enabled (ACE) pump by the United States Food and Drug Administration
The transaction is subject to the satisfaction of customary closing conditions and is expected to close in January 2023.
(Press release)
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