Ypsomed announced it agreed to sell its diabetes care business to TecMed for up to approximately $517.7 million (CHF 420 million).
Burgdorf, Switzerland–based Ypsomed says the sale helps it 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.
Related: RadNet to acquire breast imaging AI vendor iCAD for $103m
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 companies expect to close the deal in the second half of this year.
“We are focusing on capturing substantial opportunities in the subcutaneous self-injection market and expanding our global production capacities. Our fundamental growth drivers – the increasing popularity of self-care, as well as the rise of biologics and biosimilars – continue to offer enormous potential. Thanks to our automated and scalable processes, we are well-positioned to significantly participate in this growth,” said Simon Michel.
According to a news release, TecMed’s “clear vision in diabetes care” 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.
TecMed aims to establish itself as a global leader in diabetes care, with a focus 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 slated 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 will become 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.
By combining our existing mylife Loop solution, our strong commercial presence, and a patch pump currently under development, we are perfectly positioned to capture the momentum in the growing insulin pump market,” said Delarive.
