PHC Holdings Corporation and Ascensia Diabetes Care, a PHC Group company, today announced a strategic partnership with Senseonics Holdings, Inc., a medical technology company focused on the development and commercialization of long-term, implantable continuous glucose monitoring (CGM) systems for people with diabetes. The partnership comprises a global commercialization and distribution agreement and a concurrent financing agreement.
As part of the commercialization and distribution agreement, Ascensia has been appointed the exclusive global distribution partner for Senseonics' CGM systems, including Eversense(R), Eversense(R) XL and future generation products in development, such as the 365-day implantable sensor. In the U.S., Ascensia will initiate marketing and sales activities of the Eversense product in the coming months, in collaboration with Senseonics, and will take over full responsibility in the first quarter of 2021. In Europe, Ascensia will begin commercialization activities in selected countries once Senseonics' existing distribution relationships have concluded.
Under the terms of the agreement, the exclusive distribution rights to Senseonics' products are expected to last through 2025, with the exact timing dependent on factors including the launch dates for certain future generation products.
As part of the financing agreement, PHC Holdings Corporation, the parent company of Ascensia, has made an initial strategic investment of USD $35 million into Senseonics in the form of convertible debt securities. In addition, a further USD $15 million investment will be provided in exchange for Senseonics convertible preferred equity, upon FDA approval of the 180-day Eversense product.
"We are thrilled to be entering into this partnership with Senseonics and strongly believe in the value of the Eversense technology. They have highly accurate and effective products on the market and a strong pipeline of innovative solutions that can address the needs of people with diabetes. We are excited by their future generation products, particularly the 365-day sensor, which we think has the potential to simplify diabetes management and improve lives," explained Robert Schumm, President of Ascensia Diabetes Care and Diabetes Management Domain Head, PHC Group.
He added, "This partnership is the next step in building a world-class diabetes care franchise for Ascensia, as we look to expand our business beyond blood glucose monitoring. It will enable us to establish a presence in the CGM market, especially in the U.S. and Europe, and will further strengthen our existing portfolio of products. We believe that the combination of our commercial expertise and infrastructure, alongside Senseonics' product development and clinical expertise, will help to get the Eversense and Eversense XL products into the hands of people with diabetes who can benefit from them. Our aim is to work together to bring these highly effective technologies to more people with diabetes, therefore providing further choice in CGM for diabetes management. We look forward to launching the 180-day Eversense product in the U.S. and a long and successful relationship with Senseonics."
"We are extremely excited to be partnering with Ascensia, a global leader in the diabetes technology space. Ascensia is well known for their high-quality CONTOUR products used by more than 10 million patients worldwide to help manage their diabetes," said Tim Goodnow, PhD, President and CEO of Senseonics. "Their global commercial infrastructure and commitment to the Eversense systems will drive market penetration, while allowing Senseonics to focus on further development of our implanted technology."