Medingo’s insulin patch approved; shares rocket

29-Jul-2009 - Last updated on 30-Jul-2009 at 10:15 GMT

Medingo’s insulin dispensing patch has been approved by the US Food and Drug Administration (FDA), sending shares in its parent company soaring to a 12 month high.

The company claims the patch, called Solo, is the smallest, thinnest, lightest and most discrete insulin pump without cumbersome tubing. Solo consists of two components: an insulin dispensing patch and a remote control.

Using the remote patients can customise the patch’s output to match their insulin needs. Gaining approval for the patch is regarded as a major milestone by Arie Mientkavich, chairman of Medingo.

Solo is set to be showcased at the American Association of Diabetes Educators Meeting, which takes place in Atlanta, US in August 2009. Mientkavich said the Medingo is “currently considering alternatives for its go-to-market strategy and the timing of the product launch”.

Release of the news sent the share price of Medingo’s parent company, Elron Electronics Industries, up by 56.4 per cent. The rise demonstrates investors’ belief in the opportunities that exist for products that deliver insulin in a more convenient way.

Sustained growth

Approval of Medingo’s Solo patch coincided with the release of a report into the transdermal drug delivery market by Greystone Associates.

The report predicts a period of sustained growth for the transdermal drug delivery market and highlights some areas other than diabetes where the technology is effective.

In particular the report believes that transdermal patches will be useful for the elderly, who tend to be less able to self-medicate than other patients groups. The aging population means that this will provide an increasingly large market.

To achieve a sustainable growth model, which the report says has so far eluded the transdermal delivery sector, Greystone predicts companies will pursue two strategies.

Firstly companies will achieve growth by increasing market penetration in key transdermal therapeutic segments by refining product strategies. A second source of growth will come from companies seeking to extend product lifecycles in the face of patent expiration.

The report believes that growth can be achieved by expanding into new therapeutic areas and working with companies that market patent protected products.