Insulet (NASDAQ:PODD) wasn’t the only diabetes device company announcing a major deal today as privately held Intuity Medical, Inc. announced they have secured $64 million from a Series D financing round. According to a company issued press release; “The funds were contributed by new investors Venrock and Emergent Medical Partners; and existing investors Investor Growth Capital, Thomas, McNerney and Partners, U.S. Venture Partners, and Versant Ventures.”
For those who may be unfamiliar with Intuity, the company makes an all-in-one glucose monitor- think SoftTac only much, much better. With the additional funds the company should now be able to submit their device for FDA approval which Diabetic Investor believes will happen in the first half of 2010, likely sooner.
As everyone knows Diabetic Investor isn’t exactly thrilled about the future prospects for the BGM market overall. However, as we have seen recently with the introduction of the Bayer ContourUSB, good products can make a difference. Having seen the Intuity device and knowing the people involved with the company Diabetic Investor believes Intuity stands a better than average chance of succeeding where so many others have failed. Based on data provided by Healthy Outcomes, an innovative web portal that helps patients with diabetes take control of their health and wellness, there’s no question patients with diabetes are seeking an all-in-one solution for their glucose monitoring needs. When surveyed 75% of Healthy Outcomes participants indicated they would prefer an all-in-one device over their existing monitoring system.
As with Insulet, the bottom line issue for Intuity isn’t whether or not patients will accept the device, rather can the company manufacturer the device cost effectively. Diabetic Investor suspects Intuity will follow a well traveled path as upon approval they will market and support the device. Should the company be able to demonstrate the ability to manufacturer, market and support the device look for them to team up with a larger player in the market. Also like Insulet, the ultimate goal being acquired by a larger player in the market.
Unlike other newcomers to the glucose monitoring space whose products are basically the same as what’s already on the market, the Intuity device completes the evolution of the glucose monitor combining all the elements into a single patient friendly device. While Diabetic Investor does not believe this fact alone will do anything to change the current market dynamics, however as the data from Healthy Outcomes clearly indicates patient’s are seeking such a device.
Given the increasing competition for market share Diabetic Investor believes Intuity could soon be a very hot commodity. As we said with the Insulet deal, things are certainly getting interesting.