Memorandum
“EOPatch 3.0” is 22% larger, 20% heavier, and holds 50% more insulin than EOFlow’s current pump; loose commercial launch target of 2024
South Korea-based EOFlow announced that it has successfully developed a prototype of a seven-day insulin patch pump. The pump, dubbed the “EOPatch 3.0,” is based on the company’s existing commercial product, “EOPatch,” which can be worn for three and a half days and has been launched in Korea since March 2021, in Europe since September, and will launch soon in the UAE and Indonesia. The prototype has a three mL reservoir and can hold 300 units, which is 50% larger than the two mL reservoir of the current EOPatch. In terms of size, the seven-day prototype is about 22% larger and 20% heavier than the current EOPatch product (see rendering below). The company shared that the biocompatibility and toxicity tests for the pump have been completed on all major fast acting insulin products. Looking ahead, EOFlow projects that the pump could enter the field in 2024. However, CEO Mr. Jesse Kim acknowledged that the exact timeline will depend on clinical trial and regulatory timing.
EOFlow intends to price its seven-day pump lower than its current 3.5 day EOPatch on a per-day basis
Mr. Kim shared that although the company could sell the seven-day pump at double the price of the current three-and-a-half-day product (i.e., at the same per-day cost), the production cost of the new pump will likely only increase “marginally” relative to the existing EOPatch. Therefore, Mr. Kim shared that EOFlow “should be able to offer the product at a lower price,” meaning that – although the cost per pump is slightly more expensive, users might be able to purchase EOPatch 3.0 at a lower per-day price relative to the current EOPatch. Mr. Kim shared that this pricing would be a “true win-win for everybody involved in the value chain.” We agree and see that this choice could be an excellent example of healthcare system savings, in which the company can lower costs for users while improving gross margin. We appreciate that the company is thinking through all the stakeholders and appears to be valuing system savings, and hope the company can lead other companies in our ecosystem to follow suit.
- Additionally, in a 3Q22 update, EOFlow shared that the seven-day insulin pump could lower costs and be an appealing option for both type 1s and 2s. EOFlow positioned EOPatch 3.0’s extended wear time as a way to improve the insulin pump experience for people with type 1 diabetes and also positioned the longer wear time as potentially beneficial for people with type 2 diabetes who typically require more insulin and want a simpler user interface.
Close Concerns’ Questions
- Is EOFlow looking to integrate this pump with its AID system? Yes, EOFlow is currently conducting a pivotal clinical study on its first AID system (called EOPatch X) based on its EOPatch wearable pump and Typezero algorithm, with the target of getting it approved for sales in Korea by the end of 2023 first (to be followed by geographical expansion into the US and OUS). Once approved, the company will seek to expand the AID line to EOPatch 3.0.
- Where does EOFlow plan to launch the patch pump? Does EOFlow have plans to market the EOPatch 3.0 in Europe via its partnership with A. Menarini? While the most likely initial launch site will be Korea, it is considering the option of doing it ‘simultaneously’ in the US as well. The company will of course work with its partner to enter the European market as soon as practically possible too.
- When does EOFlow intend to start clinical trials on the EOPatch 0? How large will the study be? Neither the timing nor the size of the study has been decided yet.
- What does the pricing of EOPatch 3.0 look like relative to pods sold in Insulet’s Omnipod franchise? While the exact pricing strategy is not yet fixed, the company intends to make the price difference ‘noticeable’ to all stakeholders.
--by Katie Lingen, Armaan Nallicheri, and Kelly Close