Zacks Investment Research | Feb 23, 2020 09:08PM ET
Abbott's (NYSE:ABT) recent alliance with insulin management system maker, Insulet Corporation (NASDAQ:PODD) , is expected to fortify the company’s Diabetes Care business. The agreement aims at integrating Abbott’s continuous glucose monitoring (CGM) technology with Insulet's Omnipod Horizon Automated Insulin Delivery (AID) System, in order to provide improved insulin delivery.
This combined system is claimed to be the first with a fully-disposable wearable sensor and pump. However, financial terms of the deal remain undisclosed.
Is the Integration Strategic?
Under the integrated platform, the Omnipod Horizon System will provide a new feature combining Insulet’s tubeless insulin delivery Pod and Abbott's next-generation FreeStyle Libre sensor — the FreeStyle Libre 2 system.
This integrated system will always be in automated insulin delivery mode and can be controlled through a smartphone app, such that the user can manually take dose of fast-acting insulin or bolus before meals. Per both companies, this will help the system deliver an optimal performance.
Both companies will utilize their ability to sell products through the pharmacy via pay-as-you-go model. This, while easing out product delivery complicacy, is expected to boost customer adoption rate.
In this regard we note that Abbott’s FreeStyle Libre 2 system offers increased accuracy and optional glucose alarms at no additional cost compared with the first-generation one. Already approved in Europe, itis in the process to seek approval in the United States as well. Meanwhile, Insulet is running trials for its next-generation Omnipod Horizon AID System.
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Per a report by Original post
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