Medtronic plans to significantly increase its diabetes research and development efforts, thanks to an investment from Blackstone Life Sciences and other co-investors for up to $337 million.
The Dublin company’s diabetes division, based in Northridge, will use the money to further four unidentified programs over the next several years.
“For competitive reasons, Medtronic is not disclosing the specific development programs,” the company said of its new diabetes R&D projects.
The company also did not project how this investment may affect operations at its Northridge operation, which employs more than 1,000, according to a spokesperson for the company.
Investors will receive royalties for successfully commercialized products, Medtronic said, which are expected to be in the low- to mid-single digit range as a percentage of sales. Additional terms of the arrangement were not disclosed.
“Over the past 12 months, Medtronic has significantly increased its investment in Diabetes R&D, including investments in a series of near-term programs such as the MiniMed 780G insulin pump system, our Personalized Closed Loop (PCL) system, our extended wear infusion set, and our Zeus and Synergy sensors,” Sean Salmon, president of the Medtronic Diabetes Group, said in a statement. “The added investment from Blackstone empowers us to pull forward specific programs in our pump and (continuous glucose monitoring) pipeline that aim to address unmet patient needs, beyond PCL and Synergy.”
Medtronic announced the investment and pipeline projects at the virtual 80th Scientific Sessions of the American Diabetes Association, which took place from June 12 to 16.
Shares of Medtronic (MDT) closed down 52 cents, or 0.6 percent, to $93.91 on the New York Stock Exchange on Friday, a day when the Dow Jones industrial average was down 0.8 percent.