SAN DIEGO, Jan 13, 2009 (BUSINESS WIRE) --
DexCom, Inc. (NASDAQ:DXCM), a leading provider of continuous glucose monitoring systems for use by people with diabetes at home and by healthcare providers in the hospital, announced today the amendment of its joint development agreement with Animas Corporation to extend outside the U.S. This revised agreement gives Animas exclusive rights to DexCom CGM technology, now and in the future, for integration into Animas insulin pumps outside the U.S. Animas also retains the non-exclusive right to develop and market CGM-enabled ambulatory insulin pumps within the United States.
Under the terms of the agreement, Animas will receive an exclusive right to develop and market CGM-enabled ambulatory insulin delivery systems outside the U.S. Animas will pay DexCom a one-time $5 million milestone payment upon the first regulatory body approval outside the U.S. for the new system. In addition, Animas will contribute $300,000 to offset a portion of DexCom's development expenses for the new system. The parties have also entered into a commercialization agreement under which Animas will obtain distribution rights for DexCom sensors and transmitters to users of the integrated system and will pay a royalty to DexCom for each CGM-enabled pump sold outside the U.S. The initial term of the development agreement is three years and the initial term of the commercialization agreement is three years from the first commercial product launch.
The initial product will be based on Animas' advanced pump technology and DexCom's SEVEN(R) continuous glucose monitoring system. The new technology will enable the Animas(R) pump to receive glucose readings from the DexCom transmitter and display this information on the pump's color screen. Users will have access to real-time glucose information and trends in addition to receiving alerts for low and high glucose readings. Having real-time readings displayed on the pump screen may allow users to make more timely adjustments to their insulin delivery, and will also eliminate a separate receiver, reducing the amount of equipment required to use CGM and the pump system.
"Diabetes is a chronic disease that requires around-the-clock attention. Insulin pumps and CGM can help reduce some of the burden on patients managing their diabetes," said Terrance H. Gregg, President and Chief Executive Officer of DexCom. "We believe these expanded agreements will bring the best in CGM together with the top pump technology for people with diabetes outside the U.S."
The Animas insulin pump allows users to quickly increase or decrease their insulin amounts with just a few button presses, based on their blood glucose levels, what they eat, activity and metabolic influences. DexCom's SEVEN, the only approved seven day CGM system, measures glucose throughout the day and night, allowing users to see trends and patterns in glucose readings. Combining current and future pump technology with CGM can give users more powerful tools to better manage their diabetes - and may in the long term help prevent the complications associated with the disease.
DexCom anticipates the integrated system will be available to patients in the first half of 2010.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for use by people with diabetes at home and by healthcare providers in the hospital.
DexCom's Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements concerning the development and anticipated launch of a product which integrates DexCom continuous glucose monitoring technology into the Animas insulin pump. These forward-looking statements are based on DexCom's current expectations and beliefs concerning future developments and their potential effects on DexCom. There can be no assurance that future developments affecting DexCom will be those that it has anticipated. DexCom is a medical device company with a limited operating history. Successful commercialization of the company's products is subject to numerous risks and uncertainties, including a lack of acceptance in the marketplace by physicians and patients, the inability to manufacture products in commercial quantities at an acceptable cost, possible delays in the company's development programs, the inability of patients to receive reimbursement from third-party payors and inadequate financial and other resources. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the company's quarterly report on Form 10-Q for the period ending September 30, 2008, as filed with the Securities and Exchange Commission on November 10, 2008, and its other filings with the Securities and Exchange Commission from time to time. Should one or more of these risks or uncertainties materialize, or should any of the company's assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. DexCom undertakes no obligation to publicly update or revise any forward-looking statements.
SOURCE: DexCom, Inc.
Steve Pacelli, 858-200-0200
Dorland Public Relations
Kelly Kutchinsky, 267-765-3979
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