MINIMED/NOVO NORDISK INSULIN INFUSION THERAPY CO-PROMOTION AGREEMENT

MINIMED/NOVO NORDISK INSULIN INFUSION THERAPY CO-PROMOTION AGREEMENT will begin immediately in Europe and in the next 30 to 60 days in the U.S. Under a seven-year, worldwide agreement jointly announced Jan. 22, MiniMed and Novo Nordisk will cooperate "on a country-by-country basis" in the marketing, distribution and servicing of MiniMed's current and future generations of external insulin pumps and pump accessories and Novo Nordisk's pump insulin. They also will work together to develop and commercialize "new products to further improve" insulin infusion therapy. The firms say the agreement is scheduled to begin first in Europe because "it was agreed that the synergy of both companies could best be started there and then the experiences gained transferred to other regions and countries." The agreement is expected to be unrolled in other parts of the world "over an appropriate period of time." MiniMed's current-generation external insulin pump is the Model 506. The firm's pump accessory products include the Sof-set needle-free infusion set and Polyfin insulin-compatible tubing. Novo Nordisk's insulin infusion therapy products include Velosulin insulin and the Nordisk Infuser MK II external insulin pump. Terms of the agreement call for Novo Nordisk to eventually cease manufacturing and sales of its own external insulin pump and accessories. The phaseout of Novo Nordisk's pumps will occur on a country-by-country basis as MiniMed's next generation of pumps becomes available, according to the companies. Novo Nordisk plans to continue supplying services for its own pumps for four years once it stops selling the products. The agreement also will result in the establishment of a European service center for MiniMed's products in an as-yet-undesignated site in Denmark. The center will be operated by Novo Nordisk, which is based in Bagsvaerd, Denmark. Servicing of MiniMed products sold "in the rest of the world" will continue from MiniMed's facilities in Sylmar, California. MiniMed, which estimates it holds a 60% share of the worldwide insulin pump market, currently sells its products in the U.S. through a 25-person direct sales force and in France through four salespeople. MiniMed uses distributors in Canada, Germany, Norway, Sweden, Denmark, Finland, Belgium, The Netherlands and Italy. Novo Nordisk, which believes its insulin pumps hold a 15% share of the worldwide market and that Velosulin accounts for "more than half" of the insulin sold for pumps, has about 200 salespeople in the U.S., 130 in Japan and 400 to 500 in Europe. The company says that it has not yet determined how many of the salespeople will promote MiniMed products. Not covered by the agreement is MiniMed's implantable pump technology. The firm currently is conducting U.S. clinical studies of its Model 2001 implantable pump and says the product has been implanted in over 400 patients worldwide. The firm also expects to initiate clinical trials of a glucose sensor "within the year." Eventually, MiniMed plans to "join these technologies together to create an artificial pancreas" that can deliver insulin "should blood glucose values be elevated."