Scuba Dive Summary:
- Medtronic is scheduled to acquire Nutrino Health, a provider of nutritional data analysis, to bolster its diabetes group offerings. The financial terms of the agreement were not disclosed by the companies.
- The medical device company intends to integrate Nutrino's food analysis capabilities into its own devices for the treatment of diabetes in order to help patients better manage their condition. Nutrino's services include artificial intelligence tools for personalized analysis of how nutritional intake will affect a person's health.
- By closing the transaction by the end of the third quarter, Medtronic will obtain Nutrino's food database, food analysis system, and nutritional science knowledge.
Medtronic is at the forefront of the industry in developing diabetes management technologies, having built the first FDA approved hybrid circuitry that continuously monitors blood sugar and administers doses of insulin, known as "artificial pancreas."
With the acquisition of Nutrino, Medtronic aims to help simplify food and nutrition management for patients with diabetes. Nutrino has developed algorithms to predict glycemic responses to food. Medtronic is seeking to integrate this technology with its continuous glucose monitoring (CGM) and closed insulin release systems.
In the second quarter earnings reported last week, diabetes group revenue increased 26.2%, largely due to sales of the MiniMed 670G closed-loop hybrid insulin pump system and the Guardian Connect continuous glucose monitoring system.
Medtronic and Nutrino began working together in June 2016, and Nutrino played a role in the recent US product launches of Medtronic, the companies said. These include an updated myLog iPro2 application, used with professional CGM devices, and the Sugar.IQ diabetes application wizard, used with the Guardian Connect smart CGM system.
The Sugar.IQ application uses IBM Watson's analysis to find patterns in glucose data and provides personalized real-time feedback based on a patient's intake of dietary insulin, daily routines, and other factors.
The iPro2 myLog application allows the physician to evaluate a patient's meals based on the individual's glucose reaction. Patients record activity and glucose readings, and take pictures of each meal and snack to record their food intake. The platform generates a Pattern Snapshot that shows the time in the target glucose range, glucose variability patterns, and a full glucose trace graph. A second report called FoodPrint produces notes (A, B, C, D, or F) for each meal based on the body's glucose response.
"Bringing Nutrino and its nutrition expertise into our organization will give us a substantial differential in the diabetes industry and accelerate our progress to help people with diabetes live with greater freedom and better health," said Hooman Hakami, president of the Diabetes Group at Medtronic
The acquisition is expected to be completed in the third fiscal quarter of Medtronic, which ends on January 25, 2019. The transaction is expected to be neutral in relation to the fiscal result of 2019 per share.