Glytec announced $21 million in funding to support its insulin management software. The financing included $9 million in debt financing from Silicon Valley Bank and a $12 million equity investment lead by Savitr Capital. This funding will support “investing in research and development around patient safety, provider workflows and analytics, adding additional talent to [Glytec’s] workforce and enhancing integrations with EHRs, mobile apps and other diabetes technology across the continuum of care.” Specifically, Glytec plans to use this funding in part to expand its engineering and product departments by at least “30%” in 2021.
As background, Glytec’s eGlycemic Management System is a software package available to hospitals that provides insulin dosing advice, data analytics, and real-time glycemic data integration into EHRs for hospitalized patients. Notably, Glytec offers insulin dosing support “across the continuum” of diabetes care from hospital intake to outpatient care and as of DTM 2020 was utilized in “nearly 300 hospitals.” To us, Glytec’s inpatient insulin dosing support system Glucommander has huge potential given the complicated challenges of in-patient glycemic management, especially for providers who may not specialize in diabetes management. Of course, in-patient hospital management has also been an increasingly important topic as thousands of people with diabetes were hospitalized during the COVID-19 pandemic. To that end, the FDA has been temporarily allowing use of Dexcom and Abbott CGMs in the hospital for over a year now. (Interestingly – we did use the terminology “allow” a year ago but today we would say that FDA enabled this and we’d encourage all patients to ask for this. Of course we know, only those in “first world countries” could even dream of this and that 80% of the PWD globally are in LIMI countries where this is not available.)
Many hospitals still utilize sliding scales to dose insulin for their hospitalized patients, which can limit the quality of care compared to a personalized insulin regimen like those provided by Glytec’s Glucommander system. Glucommander and has already been shown to reduce hospital readmissions and data from a test of Glytec’s system at Kaweah Delta Medical Center presented at ATTD 2020 indicated that the system drove $10 million in cost savings due to reductions in hypoglycemia and length of stay. According to Glytec, cost savings from its eGlycemic Management System could be as great as $20,000 per patient – we look forward to getting more details on assumptions behind the health economics.
Close Concerns’ Q&A with Glytec
Q: What is Glytec’s total funding to date?
A: $65 million
Q: With increasing inpatient CGM use driven by COVID-19, does Glytec have plans to pursue CGM partnerships and data sharing agreements?
A: Glytec is always working to enhance its product, developing innovations within the business and alongside partners. Glytec already participated in CGM research, including this recently published study and research presented at ADA 2020. Glytec will continue to work with its customers and partners on exciting research opportunities and innovations moving forward.
Q: Has Glytec received increased interest in its product offerings due to the COVID-19 pandemic?
Yes. Glytec experienced more than 40% growth in annual recurring revenue over the last five quarters, including early in the pandemic when investment in hospital information technology slowed. In the same period, Glytec’s sales funnel increased 10x.
Q: Does Glytec have plans to expand outside the hospital population to provide insulin dosing support for outpatients during standard diabetes management?
Glucommander is FDA-cleared for outpatient support. A portion of this funding will be used to further develop Glytec’s outpatient solution as the company believes in the continuum of care from hospital to home environments.
Q: How have providers responded to using Glytec’s eGlycemic Management System with their patients?
A: The response from providers and nurses alike has been incredible. Often Glytec hears that with eGMS, health systems are finally able to achieve and sustain the standard of care and the results they are seeking in their glycemic management initiatives. For example, at Sentara Healthcare, within 90 days of implementing Glucommander, Sentara documented significant improvements in rates of both hypoglycemia and hyperglycemia.
--by Hanna Gutow, Albert Cai, and Kelly Close