Ypsomed Divests Diabetes Business to Focus on GLP-1 Self-Injectors in $512M Deal

Ypsomed, a leading medical technology company, has announced plans to sell its diabetes care business to TecMed, a new Swiss medtech firm, in a deal worth up to 420 million Swiss francs (approximately $512.9 million). This strategic move marks Ypsomed's complete exit from the diabetes care sector and a shift towards focusing on self-injectors for subcutaneous drug delivery, particularly for GLP-1 medications.

Restructuring and Strategic Focus

The transaction, expected to close in the latter half of 2025, follows Ypsomed's earlier divestment of its insulin pen needle business and blood sugar monitoring operations in March 2024. With this latest deal, Ypsomed aims to concentrate its efforts on developing and manufacturing self-injectors and strengthening its partnerships with biopharma companies.

Simon Michel, CEO of Ypsomed, emphasized the company's new direction: "We are focusing on capturing substantial opportunities in the subcutaneous self-injection market and expanding our global production capacities. Our fundamental growth drivers—the increasing popularity of selfcare, as well as the rise of biologics and biosimilars—continue to offer enormous potential."

TecMed's Expansion and Integration Plans

TecMed, controlled by Swiss billionaire Willy Michel, plans to combine Ypsomed's tube pump system—the mylife Loop, which includes the mylife YpsoPump and the CamAPS FX artificial pancreas app—with its own patch-pump system currently under development. This integration aims to strengthen TecMed's position in the insulin pump market.

Patrick Schär, TecMed's CEO, who will transition to the role of corporate services officer post-acquisition, stated, "The experience of Ypsomed Diabetes Care as a pioneer in insulin pump therapy will be the ideal set-up for the future launch of our patch-pump."

Operational Changes and Future Developments

As part of the restructuring, TecMed will establish a new headquarters in Ypsomed's hometown of Burgdorf, Switzerland, with capacity for around 300 employees. Approximately 200 Ypsomed employees from nearby Solothurn are expected to relocate to Burgdorf later this year.

Meanwhile, Ypsomed plans to repurpose its Solothurn site, establishing two production halls, a tool shop, and a conference center dedicated to expanding its autoinjector business. This move aligns with the company's recent partnership with Novo Nordisk to support the production of obesity-focused medications Wegovy and Ozempic.

In a related development, Ypsomed has partnered with digital health developer Sidekick Health to create a platform supporting patients using GLP-1 medications. This collaboration aims to enhance patient care by allowing automatic logging of injection data and providing lifestyle and behavioral support.