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I think this is good news.

Feb. 15, 2012, 4:15 p.m. EST
Insulet Announces Global Agreement With LifeScan, Inc to Integrate Their OneTouch Blood Glucose Monitoring Technologies Into the OmniPod(R) Insulin Pump
OneTouch(R) Technology to Be Integrated With Future Version of the OmniPod Tubeless Insulin Pump's Personal Diabetes Manager

BEDFORD, MA, Feb 15, 2012 (MARKETWIRE via COMTEX) -- Insulet Corporation PODD -1.18% , the leader in tubeless insulin pump technology with its OmniPod(R) Insulin Management System, today announced it has signed a worldwide agreement with LifeScan, Inc. to integrate LifeScan's OneTouch(R) blood glucose monitoring technology into the OmniPod Personal Diabetes Manager ("PDM").

"The easy to use, tubeless OmniPod is the most innovative technology available in the insulin pump market, so we are thrilled to integrate with LifeScan's market leading OneTouch(R) blood glucose monitoring technologies," said Duane DeSisto, President and Chief Executive Officer of Insulet. "Our team has commenced development efforts on a new PDM which we expect to be commercialized in 2013. The new integrated PDM will work with the next generation OmniPod, which is currently awaiting 510(k) clearance."

Under the terms of the worldwide agreement, LifeScan will provide its glucose monitoring technology to Insulet who will be responsible for the development, design and approval of the integrated device. The initial term of the agreement will run into 2017 and is non-exclusive. Insulet, however, maintains an exclusivity option to be declared, at its discretion, upon commercialization of the integrated PDM. This option would make LifeScan the exclusive blood glucose monitoring technology integrated into the OmniPod PDM and provide additional compensation to Insulet.

About Insulet Corporation Insulet Corporation is an innovative medical device company dedicated to making the lives of people with diabetes easier. Through its OmniPod Insulin Management System, Insulet seeks to expand the use of insulin pump therapy among people with insulin-dependent diabetes. The OmniPod is a revolutionary and easy-to-use tubeless insulin pump that features just two parts and fully-automated cannula insertion. Founded in 2000, Insulet Corporation is based in Bedford, Mass. For more information, please visit: .

Forward-Looking Statement This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, express or implied statements regarding plans and objectives for future operations, plans and objectives for product development, plans and objectives for regulatory approval, product development, product acceptance and other statements identified by words like "believe," "expect," "may," "will," "should," "seek," or "could" and similar expressions, constitute forward-looking statements. These forward-looking statements are based on Insulet's current expectations and beliefs concerning future developments and their potential effects on Insulet. There can be no assurance that future developments affecting Insulet will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond its control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: risks associated with the successful integration of LifeScan's OneTouch(R) Verio(TM) blood glucose monitoring technology into Insulet's PDM; potential supply problems or price fluctuations with sole source or other third-party suppliers on which Insulet is dependent; Insulet's ability to protect its intellectual property and other proprietary rights; conflicts with the intellectual property of third parties, including claims that Insulet's current or future products infringe the proprietary rights of others; adverse regulatory or legal actions relating to Insulet; failure to obtain timely regulatory clearance or approval for the sale of a PDM incorporating LifeScan's OneTouch(R) Verio(TM) blood glucose monitoring technology; failure of Insulet's contract manufacturers or component suppliers to comply with FDA's quality system regulations; and other risks and uncertainties described in its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 10, 2011 in the section entitled "Risk Factors," and in its other filings from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of its assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Insulet undertakes no obligation to publicly update or revise any forward-looking statements.

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Replies to This Discussion

My interpretation of all I know is:
Later this year we will all get a free, new PDM with the smaller Pods. This PDM will still use Freestyle strips. Then sometime in 2013 PDM buyers will be given a choice between the Freestyle PDM and the OneTouch PDM. If Insulet choses to discontinue the Freestyle PDM then LifeScan will provide additional compensation to Insulet.

Helmut - I recently heard similar from my local rep who confirmed that all omnipod users will be switched over to the new pdm and smaller pods once launched. Those who have been using the pod the longest will receive the new pdm first and then newer users will receive them (chronologically). I also *heard* that the new pdm will use the Freestyle strips and that future pdms may use a different type of strip.

spot on Helmut.

Some more info here (link):

"The Eros system will be compatible with both the Abbott strip, because it is a platform we intend to launch this year," he said. "When the OneTouch-integrated device is available, we have the option to either maintain 2 PDMs with different strips in them, or to select exclusivity with LifeScan and just sell that on a go-forward basis. That's a decision we'll make as we get closer to 2013."

So omnipod 2 (project called eros) will not be delayed by this agreement.

Insulet already has a deal with Abbott (NYSE:ABT ) and its FreeStyle BGM, but that pact is set to expire in 2013

Thus they surely will start selling 2 different versions of PDM, PDM-ABBOTT and in 2013 PDM-LIFESCAN.
I think it's strange they will keep 2 PDM in the future.
And when dexcom integration will be ready, they will sell another "revision", PDM-DEXCOM-LIFESCAN ?

Remember that OneTouch just launched a new strip platform-the Verio IQ which uses a much smaller blood sample. 0.6 micro liters compared to the current 1 microliter. I would assume that they would integrate this new strip into the new PDM-hopefully:)

These future enhancments are so exciting. I have been 'podded' since 12-1-11 and love my 'mini pancreas'. Also started using a Dexcom in January. Love that too. I feel so 'BIONIC'!

Kennedy likes the new freestyle " easier to use" minescule drop of blood, will be devastating for her to go back to one touch... do they have a new strip similiar to freestyle?

I would agree w/ Brian G that the One Touch version will likely be the new Verio Gold strip. You can learn more about it at One Touch's Canadian site, here. Still not a "zipwik tab" like the Freestyle, but hopefully the smaller blood sample size will help mitigate as many errors due to insufficient sample size as the other One Touch strips (man o man I can remember how many of those stinkin' errors I had when I used one touch stuff a couple of years ago!).

Yes, it will be the Verio's strips (link):

successful integration of LifeScan's OneTouch(R) Verio(TM) blood glucose monitoring technology into Insulet's PDM

The Verio Pro (IQ is an improved model, both using the gold strips) is actually a very good meter, measures usually higher than others but very close to laboratory blood measures (YSI) and has repeatable readings (few random errors). That's in the experience of a group of my friends comparing it with other glucose meters in everyday usage.

NOOOOOOOOOOOOOOO!!! This made me sad. I love the Freestyle!! But perhaps the new PDM will be integrated with OneTouch's new strips that allegedly require less blood then their ultra strips. but still... NOOOOOOOOOO!

Jeanine - see Helmut's response above. I agree with his assessment after listening to the Q1 Insulet earnings call.

I missed this announcement because I just recently started using Omnipod. I've got the freestyle PDM. I've used OneTouch before and HATE IT!!!! I'd prefer they go do Aviva Accu-Check. Still a lot less blood, much easier to work with strips and accurate testing results. Oh well...




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