Dive Brief:
- Eli Lilly has pulled out of a partnership with Ypsomed that would have given it a branded insulin pump to sell in the U.S.
- Lilly struck a deal two years ago to commercialize YpsoPump under its own brand in the U.S. The partners have since worked to customize the pump, which has been sold in Europe since 2016, for the U.S. market.
- Ypsomed plans to push ahead with the U.S. expansion without Lilly, outlining plans to file with the Food and Drug Administration in the second half of next year and commercialize the pump with a new partner.
Dive Insight:
Lilly has been working to add a device component to its diabetes business for seven years, pumping money into medtech R&D as it sought to expand beyond drugs to thrive in the market. That strategy recently manifested in a diabetes management platform that integrates with technologies such as Dexcom’s continuous glucose monitoring systems.
Lilly, based in Indianapolis, in November 2020 positioned itself to add a pump to its platform by partnering with Swiss-based Ypsomed. The partners planned to launch a customized version of the YpsoPump that used pre-filled insulin cartridges for Lilly’s rapid-acting insulins.
At the time of the deal, Ypsomed aimed to submit a version of its pump for clearance by the FDA in 2022. Lilly would have exclusive rights to commercialize the pump in the U.S. In its statement to disclose the end of the partnership, Ypsomed said “Lilly decided to stop the joint project ... to enter the U.S. insulin pump market in 2026.”
While Lilly has walked away from the project, Ypsomed plans to submit the system to the FDA in the second half of next year. The Swiss medtech company is “deepening discussions with other interested parties” to find a new commercialization partner. Ypsomed views its pump as “highly attractive for the U.S. market” because of its form factors, prefilled cartridge and automated insulin delivery system.
Shares of Ypsomed fell more than 10% after the announcement, sliding from CHF 200 ($214) to CHF 165 on the SIX Swiss Exchange.
