Tandem Diabetes Care announced Wednesday it has entered into an agreement to buy AMF Medical SA, a Swiss company developing a patch insulin pump.
The Sigi Patch Pump, which is not yet commercially available, is a rechargeable patch that uses pre-filled insulin cartridges. The company said it would be compatible with automated insulin delivery systems.
The deal includes a previous strategic investment of 8 million Swiss Francs ($8.7 million), previously paid in the third quarter, and CHF 62.4 million ($67.6 million) in cash. Under the agreement, Tandem would also pay up to CHF 129.6 million ($140.4 million) contingent on achievements like meeting development milestones and obtaining FDA clearance.
The acquisition is expected to close next month.
“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,” John Sheridan, Tandem Diabetes Care president and CEO, said in a statement. “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.”
THE LARGER TREND
AMF Medical was founded in 2014. In November of last year, the company announced its Sigi system had received FDA Breakthrough Device Designation.
This marks Tandem’s second acquisition announcement this year. In July, the company said it had purchased Capillary Biomedical, which was developing an extended-wear infusion set.
In its third quarter earnings, Tandem reported worldwide sales increased 14% to $204.5 million compared with last year. It posted adjusted EBITDA of $9.9 million compared with $26.9 million in the prior-year period.
The company also said it had submitted its Mobi Insulin Delivery System to the FDA for 510(k) clearance.
“We are committed to expanding our portfolio of diabetes solutions to drive longer-term growth and leverage our operations, as we continue our work to improve the lives of people with diabetes,” Sheridan said in a statement at the time.
This story originally appeared on Mobihealthnews