- Thursday, Medtronic Plc MDT agreed to acquire Korea-based EOflow Co Ltd, manufacturer of the EOPatch device — a tubeless, wearable, and fully disposable insulin delivery device.
- The total consideration would be KRW 971 billion ($738 million).
- William Blair writes that the announcement is not expected to impact Insulet Corporation PODD in the near and medium term.
- The company sees strong momentum with the Omnipod 5 launch and long-term catalysts, such as the basal pod in 2024 that expands access deeper into the type 2 market.
- The analyst sees many TAM-expansive opportunities still to come. It rates the stock Outperform.
- It will look for any further detail on timing or launch plans at Medtronic’s ADA meeting in June to understand the impact the acquisition can have on the market and Insulet.
- William Blair writes that the EOflow acquisition further supports the potential for this type of technology. However, the technology will have much to prove (and add to) before becoming a more substantial patch pump player.
- Price Action: PODD shares are up 6.03% at $293.75 premarket on the last check Friday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Be First to Comment