Medtronic Announces a $337 Million Product Investment from Blackstone Life Sciences to Expand Development of Future Diabetes ...
12 Juni 2020 - 11:30PM
Medtronic plc (NYSE:MDT) and Blackstone (NYSE:BX) today announced
that Medtronic intends to significantly increase research and
development (R&D) funding in its Diabetes Group through an
agreement to receive $337 million of funding from funds managed by
Blackstone Life Sciences (“BXLS”) including co-investors, aimed at
advancing new, innovative products especially designed to
reduce the burden of diabetes management. The announcement was made
in conjunction with the start of the virtual 80th Scientific
Sessions of the American Diabetes Association (ADA). Medtronic’s
diabetes device portfolio is designed to improve patient outcomes
and provide greater lifestyle flexibility to Type 1 diabetes
patients, which includes approximately 22 million individuals
worldwide and 1.5 million individuals in the United States.
“This investment is important for people living
with diabetes, as we expect it will expand our offering of
future insulin delivery and sensor innovations that have the
potential to improve patients’ management of their diabetes,”
said Sean Salmon, Medtronic executive vice president and president,
Diabetes Group. “Over the past 12 months, Medtronic has
significantly increased its investment in Diabetes R&D,
including investments in a series of near-term programs such as
the MiniMed™ 780G insulin pump system, our Personalized Closed
Loop (PCL) system, our extended wear infusion set, and our Zeus and
Synergy sensors. The added investment from Blackstone empowers us
to pull forward specific programs in our pump and CGM pipeline that
aim to address unmet patient needs, beyond PCL and Synergy.”
Blackstone Life Sciences has significant
experience in executing development funding agreements in the
pharmaceutical and biotech industry, to help expand and accelerate
meaningful innovation for patients. The investment leverages this
proven model.
“This collaboration, our first investment in the
medical devices space, demonstrates how Blackstone Life Sciences is
using its capital and expertise to help bring vital technologies,
with the potential to save lives, to patients who need them,” said
Nicholas Galakatos, Ph.D., global head of Blackstone Life Sciences.
“We look forward to partnering with Medtronic, the leader in this
space, to advance their next generation of innovative medical
devices for diabetes patients.”
Under the terms of the agreement, Medtronic
will receive up to $337 million in funding over the next several
years to fund four identified Diabetes R&D programs. For
competitive reasons, Medtronic is not disclosing the specific
development programs. Medtronic’s engineering, clinical, and
regulatory teams will perform the development work to activate
these programs. The funding received will be equal to the R&D
expenses incurred. If successfully commercialized, Medtronic will
pay royalties which are expected to be in the low- to mid-single
digit range as a percentage of sales. Additional terms of the
arrangement were not disclosed.
The ADA Annual Scientific Sessions is the
largest diabetes meeting in the United States where
endocrinologists from around the world gather to discuss the latest
advancements in diabetes research, prevention and care. Medtronic
will be hosting a management briefing from ADA for investors &
analysts at 6 p.m. EDT today. Click here for more
details.
About Blackstone Life
SciencesBlackstone Life Sciences is a private, global
investment platform with capabilities to invest across the
life-cycle of companies and products within the key life science
sectors. By combining scale investments and hands-on operational
leadership, Blackstone Life Sciences helps bring to market
promising new medicines and medical products that improve patients’
lives.
About the Diabetes Group at
Medtronic (www.medtronicdiabetes.com)Medtronic is
working together with the global community to change the way people
manage diabetes. The company aims to transform diabetes care by
expanding access, integrating care and improving outcomes, so
people living with diabetes can enjoy greater freedom and better
health.
About MedtronicMedtronic plc
(www.medtronic.com), headquartered in Dublin, Ireland, is among the
world’s largest medical technology, services and solutions
companies – alleviating pain, restoring health and extending life
for millions of people around the world. Medtronic employs more
than 90,000 people worldwide, serving physicians, hospitals and
patients in more than 150 countries. The company is focused on
collaborating with stakeholders around the world to take healthcare
Further, Together.
Any forward-looking statements are subject
to risks and uncertainties such as those described in Medtronic's
periodic reports on file with the Securities and Exchange
Commission. Actual results may differ materially from anticipated
results.
-end-
Janet ChoMedtronic plcPublic Relations+1-818-576-5014
Ryan WeispfenningMedtronic plcInvestor
Relations+1-763-505-4626
Jennifer FriedmanBlackstone+1-212-583-5122
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