Insight Bite: Dexcom’s Typezero Takeover Accelerates Artificial Pancreas Research

Dexcom, California-based creators of continuous glucose monitoring devices, have acquired TypeZero Technologies, a software start-up from the University of Virginia that develops algorithms for artificial pancreas systems. Terms of the deal were not disclosed.

The acquisition follows a long relationship between the two companies, and is thought to be in aid of Dexcom’s plan to launch an automated insulin delivery system [AID] in 2019.

In a statement, Dexcom’s Executive Vice President of Strategy Steve Pacelli said the acquisition would help the company develop new tools for diabetes treatment:  

“TypeZero is a great fit for Dexcom as we look to deliver a growing set of tools to both our insulin delivery partners and our customers,” “Combined with best-in-class CGM technology, we believe TypeZero’s technology and strong team will accelerate our efforts to further differentiate Dexcom’s portfolio.”

Prior to acquisition, Typezero worked on several tools for treating diabetes—including a smartphone-based artificial pancreas system, therapy optimization tools for health care providers, and advisory applications for smart insulin pens.

The team will remain in Charlottesville, VA., allowing continued partnership with the University of Virginia’s Diabetes Research Center, but will now also benefit from additional support and resources from Dexcom.

“The TypeZero team is excited for our next chapter as part of Dexcom,” said Chad Rogers, TypeZero’s CEO. “For the last several years, our company has been committed to creating diabetes management products that simplify the life of a person with diabetes. As part of Dexcom, we will continue to embrace the mission to empower people with diabetes through innovation.”

Although Dexcom has said that it won’t be competing directly with any of its existing pump partners, like Eli Lily and Insulet, the joining of the two companies is likely to impact many of the groups working on sensors, insulin pumps and software in the sector. This includes their closest rival in the continuous glucose monitor (CGM) sensor space: Abbott. Not only that, but the purchase puts Dexcom one step closer to being in direct competition with market leader Medtronic, whose original artificial pancreas was hailed as a breakthrough in 2016.

About Acuity Advisors

We know technology – that’s why we’re the industry’s trusted M&A advisor. Our partners are senior players in tech and M&A: skilled at getting to the heart of a technology business, understanding what will attract buyers, and building long-lasting relationships. We have an unrivalled understanding of the industry’s complexities and personalities – our track record and client feedback are compelling evidence of that. We’re an international firm – most of our deals are cross-border, from offices in London, Munich, Shanghai and Silicon Valley – but we’re grounded in our approach. We move quickly when it’s needed, and we’re around for the long haul when patience is a virtue. We’ve maintained a very high success rate across hundreds of deals while keeping our focus on doing what’s right for our clients. From first meeting to successful exit, we earn the trust that clients and investors put in us. Learn more here.

© 2018 Acuity Advisors Limited

A conversation is never wasted. We’re confident that we can give you all the help you need, but we’ll tell you if we think there’s a better option for you.

Get in Touch Get in touch now