DexCom, Inc. (NASDAQ:DXCM), a leader in continuous glucose monitoring systems, announced today that it has entered into a Development and Commercialization Agreement with Tandem Diabetes Care, Inc. to integrate a future generation of DexCom’s continuous glucose monitoring (CGM) technology with Tandem’s t:slim™ Insulin Delivery System, the first ever touch-screen insulin pump.
“We are very pleased to work with Tandem to help people with diabetes live longer, healthier lives,” stated Terrance H. Gregg, Chief Executive Officer of DexCom. “DexCom and Tandem share a common goal of bringing best-in-class diabetes care to our patients.”
“Through the development of t:slim, Tandem learned that design and ease of use are critically important to people with diabetes,” said Kim Blickenstaff, President and Chief Executive Officer of Tandem. “DexCom’s future generation sensor adds to our portfolio approach of listening to people with diabetes and developing products that support their needs.”
The Development and Commercialization Agreement is non-exclusive and limited to the U.S. market. Under the terms of the Agreement, Tandem will pay DexCom a technology license fee of $3 million, reimburse DexCom’s development, clinical and regulatory expenses, and upon commercialization of the combined system, Tandem will pay DexCom a royalty of $100 for each CGM-enabled insulin pump sold.About DexCom, Inc. DexCom, Inc. ( www.dexcom.com), headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for ambulatory use by patients and by healthcare providers in the hospital. About Tandem Diabetes Care, Inc. Dedicated to advancing the management of diabetes, Tandem Diabetes Care, Inc. ( www.tandemdiabetes.com) is a privately held company with novel diabetes technologies. The Company offers a comprehensive, user-centric and integrated approach to product development and customer care. Tandem Diabetes Care is based in San Diego, Calif. Follow Tandem Diabetes Care on Twitter @tandemdiabetes, use #tslim Follow Tandem Diabetes Care on Facebook at www.facebook.com/TandemDiabetesCorp DexCom’s Cautionary Statement Regarding Forward Looking Statements DexCom is a medical device company with a limited operating history. Successful commercialization of the company's products is subject to numerous risks and uncertainties, including a lack of acceptance in the marketplace by physicians and patients, the inability to manufacture products in commercial quantities at an acceptable cost, possible delays in the company's development programs, the inability of patients to receive reimbursement from third-party payors and inadequate financial and other resources. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the company's annual report on Form 10-Q for the period ending September 30, 2011, as filed with the Securities and Exchange Commission on November 2, 2011.