The Medtronic-Qualcomm partnership
Medtronic (MDT) has partnered with Qualcomm to develop a disposable continuous glucose monitor (or CGM) for the type 2 diabetes patient population. The device will enable better monitoring and timely treatment of the disease due to the intelligent care provided by the device from its data capabilities.
Type 2 diabetes is a medical condition in which the body isn’t able to produce enough insulin or doesn’t react to insulin in order to function properly. It’s more common in older people. About 400 million people are estimated to have type 2 diabetes worldwide. Currently, several medical device companies, including Medtronic, DexCom (DXCM), and Abbott Laboratories (ABT), provide professional CGMs for in-clinic use to monitor blood glucose levels, primarily in type 1 diabetes patients.
Emerging market opportunity
Type 2 diabetes patients in emerging markets generally don’t monitor themselves on a regular basis due to the lack of access to self-monitoring devices. Medtronic aims to target these markets, specifically China and India, for disposable CGMs.
The Medtronic-Qualcomm partnership strengthens Medtronic’s strategic plan to evolve its business model and provide value-based services with intelligent and connected care to patients. Medtronic has entered into a number of partnerships over the last year to enhance its capabilities in the field of diabetes. These partnerships include Becton Dickinson (BDX) and Glooko, a diabetes data firm.
The company has also partnered with IBM Watson Health, a new unit of IBM launched in September 2015, for using big data to enable integrated care delivery solutions in the diabetes speciality area. With these initiatives, Medtronic’s CEO (chief executive officer) Omar Ishrak expects to unleash potential opportunities in type 2 diabetes. Investors can invest in the iShares Core S&P 500 ETF (IVV) for diversified exposure to Medtronic.
Next, let’s see why Medtronic acquired Smith & Nephew’s gynecology business.