Dexcom, Insulet in talks to merge into a diabetes device behemoth: report

Diabetes devicemakers Dexcom and Insulet have already aligned their product lines—with Insulet’s Omnipod insulin pumps designed to be used alongside Dexcom’s continuous glucose monitors—and soon that integration may become much more permanent.

The duo is reportedly in talks for Dexcom to acquire Insulet in what could join the ranks of the year’s biggest megamergers. Unnamed sources with knowledge of the discussions told Bloomberg that Dexcom and Insulet could reach an agreement as quickly as sometime in the coming weeks, though they also noted that the deal could still be delayed or scrapped altogether.

Both Dexcom and Insulet declined to comment on the matter, citing company policies not to comment on rumors or speculation.

After Bloomberg published its report Monday evening, Dexcom’s stock price plummeted in after-hours trading, from just over $324 at the close of regular trading to $295 by the time the market officially opened on Tuesday morning—a nearly 9% drop.

Insulet, meanwhile, saw the opposite reaction. After closing Monday afternoon at $202.85 per share, the stock price jumped over 7%, opening Tuesday at a little over $217.

Combining the two companies could create a single, closed-loop insulin management and delivery system, Bloomberg noted.

Insulet has developed a line of Omnipod insulin pumps, comprising tubeless devices that attach to the skin to provide up to three days’ worth of continuous insulin delivery at a time. The pods connect wirelessly to an accompanying mobile app, where users can track their insulin dosage and manage their mealtime bolus doses.

The Omnipod pumps can also be used with Dexcom’s CGM systems, which automatically take glucose readings every few minutes through a sensor worn on the skin. Those numbers are transmitted to a mobile app, which can send automated alerts if a user’s blood sugar leaves a specified range.

When the Insulet Omnipod and Dexcom CGM systems are used together, the CGM app can automatically trigger the pod to deliver more or less insulin based on the collected glucose level measurements.

Reports of the merger come amid a separate corporate shake-up for Insulet. Earlier this month, the Massachusetts-based company announced that Shacey Petrovic, its president and chief executive since 2019, will step down June 1 due to “family medical issues,” she said in a statement.

At that time, her place at the helm will be taken over by Jim Hollingshead, currently the president of ResMed’s sleep and respiratory care business.