Abbott partnership could improve Medtronic’s faltering diabetes care segment: GlobalData

Medtronic and Abbott Laboratories recently announced a partnership to integrate the former’s automated insulin delivery (AID) systems, such as the MiniMed insulin pump, with Abbott’s continuous glucose monitor (CGM) technology. This partnership is Medtronic’s first with another major diabetes care company and follows disappointing results from its diabetes care division since 2022.  To be developed by Abbott and sold through Medtronic, the new device is expected to revitalise Medtronic’s diabetes care division, according to GlobalData.

Sales of Medtronic’s existing diabetes care devices have been declining in the face of competition. Despite the launch of the Guardian 4 sensor, other competitors, including Tandem and Dexcom, have experienced growth in the market, while Medtronic has stagnated. Medtronic’s sensor technology remains behind the current competitors on the market.

David Beauchamp, Medical Analyst at GlobalData, states, “Guardian 4 sensor is bulkier, more difficult for patients to apply, lasts for a shorter time, and requires a separate transmitter to connect to patients’ metres or smartphones. Both Abbott and Dexcom have solved or streamlined all these issues for the FreeStyle Libre and G7 sensors, respectively.”

According to GlobalData’s market model for insulin pumps and CGM devices, Medtronic currently has only 4.6 per cent of the CGM market. In comparison, Abbott has 57.7 per cent of the global market for CGMs, which it has achieved in only seven years of market presence. Abbott’s expertise in CGM technologies and integration could provide a much-needed boost to Medtronic’s market share for these devices, especially as the market shifts more towards the integration of devices for diabetes care.

“This partnership shows a realisation on Medtronic’s part that its diabetes care division, specifically the company’s CGM technology, is significantly behind its competitors. Abbott’s CGM technology is more accessible, easy-to-use, and has already proven success and efficacy for diabetic patients. However, it remains to be seen if the new integrated device will be able to compete with other sensors, especially as other major medical device companies continue to innovate in the space,” adds Beauchamp.