- Dexcom Inc (NYSE:DXCM) is reportedly in talks to acquire medical-device company Insulet Corporation (NASDAQ: PODD) to create a giant in diabetes devices, according to people with knowledge of the matter.
- According to Bloomberg, talks between the companies are ongoing, and an agreement could be reached in the coming weeks. Discussions could still be delayed or fall apart, the people said.
- Insulet had a market capitalization of about $14.1 billion at Monday’s close, while Dexcom was valued at $31.8 billion.
- The talks come amid a recent slump in healthcare dealmaking, which had been booming in recent years as insurance providers, drugmakers, and device companies paired up to diversify and add scale.
- The U.S. healthcare companies have announced $103 billion worth of deals this year, down 45% from last year, as stock market volatility and uncertainty about the macroeconomy have caused activity to slow.
- Dexcom sells glucose-monitoring systems used by people with diabetes. Insulet makes pumps that deliver insulin. The companies have a partnership in which Insulet’s delivery system can connect to Dexcom’s continuous glucose monitor.
- Combining the two companies would give San Diego, California-based Dexcom the tools to create a closed-loop system in which diagnosis and treatment are provided in one.
- Price Action: PODD shares traded 10.70% higher at $224.60, while DCXM traded 5.53% lower at $306 during premarket trading on the last check Tuesday.
