Insulet sues rival for allegedly stealing trade secrets on diabetes tech
Insulet filed a lawsuit this month against its rival EOFlow, accusing it of stealing trade secrets in a case that could shake up the diabetes technology market and throw a wrench in Medtronic’s planned $738 million acquisition of EOFlow.
Insulet alleges that the South Korea-based EOFlow copied the design for its only product, a patch pump, called the Omnipod that delivers insulin to people with diabetes. Experts said the lawsuit reflects the threat that Medtronic’s acquisition of EOFlow poses to Insulet. If the deal goes through, and regulators approve EOFlow’s pump for the U.S. patients, Insulet may struggle to maintain its strong position on the market. But the lawsuit could put a pin in those plans, either by forcing Medtronic to rethink or delay its acquisition.
“If Medtronic actually had a good patch pump, a good tubeless option, that would be tough to fight against,” said Debbie Wang, medical device analyst at Morningstar.