Memorandum

Roche partners with Diabeloop marking entrance into AID field – December 11, 2020

Diabeloop to join Roche’s iPDM strategy with plans for AID system; no timelines shared; who will be CGM partner?

Roche announced a new partnership earlier this week with French-based AID algorithm company Diabeloop “to advance the management of insulin pump therapy.” Of note, Roche’s press announcement calls the partnership the company’s “first step in the field of automated insulin delivery.” That effectively confirms that the Roche/Senseonics/TypeZero hybrid closed loop project has been discontinued – last we heard on Senseonics’ 3Q19 update, that project was “on hold,” presumably due to Dexcom’s acquisition of TypeZero.

Partnering with Diabeloop is a smart strategic move that gives Roche an AID play. Diabeloop currently has CE-marking for two AID algorithms, its initial DBLG1 system, as well as its recently approved DBL-hu system for patients with highly unstable diabetes. While Roche is well-known for its Accu-Chek blood glucose meters and insulin pumps, the company has also taken steps in the last year to expand its diabetes ecosystem with the creation of the Roche Diabetes integrated Personalized Diabetes Management platform. Today’s announcement didn’t provide too many details on timing or even specific projects, but presumably, Roche and Diabeloop will need to find a CGM partner to build out an AID system. Dexcom would be an obvious choice, as Diabeloop’s algorithm already works with Dexcom G6.

With today’s announcement, Roche is entering an AID landscape that is more competitive than ever. Tandem’s Control-IQ system launched nearly one year ago and has seen rapid uptake. Tandem also plans to submit its t:sport pump with Control-IQ to the FDA in the “first half of 2021.” Medtronic has also seen success with its MiniMed 780G AID system receiving CE-mark in June with plans to submit to the FDA by the end of January 2021. In the mean-time, Medtronic has begun shipments of its 770G system in the US and Canada providing the first FDA approved AID system for use in children down to age 2. We are also anxiously awaiting results from the pivotal trial for Insulet’s Omnipod 5 hybrid closed loop system which completed in September and showed promising pre-pivotal results back in June at ADA 2020. Finally, we recently learned that Lilly has entered into a partnership with Ypsomed securing exclusive US commercial rights to the future YpsoLoop AID system.

Close Concerns’ Questions

  • What are the financial terms of this partnership (if any)?

  • Who are Roche and Diabeloop looking at for a CGM partner?

  • Is Roche interested in partnering with other algorithm and CGM companies moving forward?

  • Where does developing an AID system fall in Roche’s priorities compared to existing diabetes offerings like glucose meters and pumps?

 

--by Hanna Gutow, Albert Cai, and Kelly Close