Roche acquires Medingo for $160 million to expands its position in the growing insulin delivery systems market

Swiss drug major Roche has agreed with Israel's Elron Electronics to acquire 100% of its majority-owned subsidiary Medingo, which is engaged in the development of a semi-disposable insulin patch pump. Under the terms of the agreement, Roche will pay Medingo's shareholders an upfront payment of $160 million as well as up to 25% of the upfront payment in performance related milestones.

The acquisition - which observers said the Swiss firm has been eyeing since last year - will strengthen Roche Diabetes Care's position in the fast growing segment of insulin delivery systems. In 2009, the insulin delivery system global market was estimated at 1.6 billion Swiss francs ($1.5 billion). While the whole market is growing rapidly, the expectations for the growth of the patch pump segment are even higher, according to Roche.

Daniel O'Day, chief operating officer of Roche Diagnostics, said: 'Diabetes has become a real epidemic that affects more than 285 million people worldwide. Roche Diabetes Care, a global leader in blood glucose monitoring and insulin delivery systems, is committed to improving the quality of life for people with diabetes. With this acquisition we will broaden our portfolio of innovative insulin delivery technologies and strengthen our position as a leading player in the diabetes care business.'