Memorandum

Valeritas partners with Glooko for Bluetooth-enabled V-Go SIM dose capture accessory (previously V-Go Link); launch in 1H19 – May 1, 2018

Valeritas recently announced an agreement to provide future users of the Bluetooth-enabled V-Go SIM (Simple Insulin Management) dose capture accessory with Glooko’s cloud-based mobile and web diabetes data management platform. V-Go SIM – formerly called “V-Go Link,” but now rebranded to make the product name less general/more trademarkable – is a durable device (described by the company as "saddle-like") that snaps onto the V-Go patch insulin delivery device. V-Go SIM will send insulin delivery data and device status via one-way Bluetooth communication to a V-Go SIM mobile app. Through this new Glooko partnership, patients can also use the separate Glooko app to upload and analyze their V-Go insulin usage data.

V-Go SIM is expected to launch in the US in 1H19, pushed back from February’s guidance for a limited launch by the end of 2018. The Valeritas R&D page includes an image of V-Go SIM (still labeled V-Go Link), which appears quite slim – a huge plus, since V-Go already has a form-factor that rises meaningfully off the body. As a side note, the name “SIM” might imply to some that the device utilizes cellular connectivity, when in fact it uses Bluetooth – will this be a point of confusion?

The terms of the agreement weren’t spelled out, though it could be similar to Insulet and Glooko’s deal – Insulet has sponsored free Glooko access for all US Omnipod patients and HCPs since early 2016. This move is very smart for Valeritas, since Glooko has huge reach and V-Go could benefit from some innovation to make the product more compelling – especially to payers and HCPs. Providers could be more incentivized to prescribe V-Go (Glooko access and insulin delivery data), while Valeritas will be able to track usage and outcomes. Plus, the V-Go SIM attachment won’t change the core device’s manufacturing, a smart way to add connectivity.

Although there are no type 2-focused insulin delivery patches/pumps with connectivity currently available, V-Go SIM will hit the market next year alongside more fully featured offerings: BD’s Swatch type 2 patch pump and Insulet/Lilly’s U500 Omnipod (both with Bluetooth connectivity) are expected to launch by “September 2019” (BD) and in “2019” (Insulet). The type 2 pump/patch market has long been a source of potential, but we’ve yet to see a highly successful device yet. Could the addition of dose capture make the case for pumps/patches more compelling for payers and HCPs? There is certainly room for many products here!

  • In separate news, Valeritas recently announced the pricing of a $24 million public offering of common stock. Per the underwritten offering, 13.7 million shares are being offered at a price of $1.75 per share. The offering was expected to close last week, and net proceeds will be funneled toward working capital and other general corporate purposes. The expected raise is quite significant, potentially nearly doubling the company’s on-hand cash ($26 million at the end of 2017). We’ll hear more on Valeritas’ investor call on May 9.

 

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