Memorandum

Senseonics expands distribution agreement with Roche to include most of Europe, the Middle East, and Africa – December 5, 2016

On Friday, Senseonics announced that it has expanded its distribution agreement with Roche to include all of Europe, the Middle East, and Africa, excluding Scandinavia (where Rubin Medical is the distribution partner), Finland, and Israel. In May, the companies signed a deal under which Roche has been distributing the Eversense implantable CGM system in Germany, Italy, and the Netherlands, meaning this is a significant geographic expansion. Roche has exclusive rights to market and sell Eversense in the new territories, while Senseonics retains manufacturing and regulatory responsibilities. Senseonics’ third quarter revenue totaled just $37,000, stemming from a very controlled launch of Eversense in Sweden, Germany, and Norway (~$250,000-$300,000” is expected in full-year revenue). The expanded agreement is an encouraging early vote of confidence from Roche, and suggests clinical experiences have been positive thus far. We don’t see this as a negative for other players; CGM is in its infancy – and while we strongly believe it will eventually be standard of care, we know there is massive room the established players. Roche is expected to begin a controlled launch of its own Accu-Chek Insight CGM in Europe in the next 25 days (by end of 2016), and it will be interesting to see how the products co-exist in Roche’s portfolio.

-- by Brian Levine, Adam Brown, and Kelly Close