Roche acquires Medingo Ltd. and expands its position in the growing insulin delivery systems market

14-Apr-2010 - USA

Roche and Elron Electronics Ltd. announced that they have signed an agreement under which Roche will acquire 100% of Medingo Ltd., a majority-owned subsidiary of the Elron group. Medingo Ltd. is engaged in the development of a semi-disposable insulin patch pump. Under the terms of the agreement, Roche will pay Medingo Ltd.’s shareholders an upfront payment of US$ 160 million as well as up to 25% of the upfront payment in performance related milestones. The acquisition will strengthen Roche Diabetes Care’s position in the fast growing segment of insulin delivery systems.

Zvika Slovin, Co-CEO of Elron Electronic Industries Ltd., said: “The fate of diabetes patients has been at the center of the Medingo Ltd. from the foundation of the company. Therefore, Medingo Ltd. as well as its shareholders are very pleased to have found a very strong and potent partner in Roche to ensure success of Medingo Ltd.’s products and research and development”.

“The integration of Medingo Ltd. is a perfect fit to our existing diabetes management product portfolio”, stated Burkhard G. Piper, Head Roche Diabetes Care. “Offering an innovative micro patch pump will bring our competence in the area of integrated insulin delivery systems to a broader range of people with diabetes on insulin therapy, providing a greater choice to meet the different individual needs”.

As part of Roche Diabetes Care, Medingo Ltd. will continue to further develop and produce the insulin patch pump system which will be integrated into Roche Diabetes Care’s insulin delivery portfolio. “As we share the same vision of providing integrated diabetes management solutions for insulin pump users, Roche to us was the partner of choice to bring our technology to life. The integration into the Roche Diabetes Care business unit offers the opportunity to broadly market our innovative patch pump system with a leading global company, which brings its knowledge and strong market expertise into play”, said David Vidan, General Manager Medingo Ltd..

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