Blackstone funds Medtronic for diabetes tech R&D

Blackstone Life Sciences, a unit within the firm’s private equity group, made a $337 million investment in Medtronic to help expand development future diabetes technologies. The investment is expected to accelerate Medtronic’s diabetes pump and CGM technology pipeline. The funding included co-investors and is aimed at advancing these innovated products that are designed to reduce the burden of diabetes management, officials said. The announcement was made at the start of scientific sessions of the American Diabetes Association, which were held virtually. Medtronic’s diabetes devices are designed to provide improved patient outcomes to Type 1 diabetes patients. “This collaboration, our first investment in the medical devices space, demonstrates how Blackstone Life Sciences is using its capital and expertise to help bring vital technologies, with the potential to save lives, to patients who need them,” said Nicholas Galakatos, global head of the Blackstone unit. Officials added that Blackstone Life Sciences’ experience in executing development funding agreements in the pharmaceutical and biotech industry help expand and accelerate meaningful innovation for patients. Medtronic will receive the $337 million in funding over the next several years to back four identified diabetes research and development programs. The company did not disclose the specific development programs for competitive reasons. If the products are successfully commercialized, Medtronic will pay royalties which are expected to be in the low-to mid-single digit range as a percentage of sales. Additional terms of the deal with Blackstone were not disclosed. In the last week, Blackstone Life Sciences also announced that it would lead a $350 million royalty and equity investment in Reata Pharmaceuticals as it works on a potential therapy for a rare Alport syndrome and other rare and serious forms of kidney disease.

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