PHC Holdings Corporation and Ascensia Diabetes Care Announces Financing Agreement and Exclusive Global Commercial Agreement with Sensonics
Tokyo, Japan and Basel, Switzerland, August 10, 2020 - 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®, Eversense® 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 has made an initial strategic investment of USD $35 million into Senseonics in the form of a 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.
“This is an exciting partnership for PHC Group and Ascensia. The Eversense system is a truly innovative technology and represents a unique approach to CGM that we believe can offer a valuable option for people with diabetes. At PHC Group, our aim is to create healthcare solutions that have a positive impact and improve the lives of people. We strongly believe that this partnership can improve lives in diabetes and at the same time accelerate growth of our diabetes management business by expanding beyond blood glucose monitoring.” said Michael Kloss, President and CEO, PHC Holdings Corporation.
“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. This partnership 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. 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.” explained Robert Schumm, President of Ascensia Diabetes Care and Diabetes Management Domain Head, PHC Holdings Corporation.
“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.”
About PHC Holdings Corporation
Incorporated in 2014, PHC Holdings Corporation is a global healthcare company with subsidiaries including PHC Corporation, Ascensia Diabetes Care Holdings AG, Epredia, and LSI Medience Corporation. Committed to its corporate mission, “We contribute to the health of society through our diligent efforts to create healthcare solutions that have a positive impact and improve the lives of people,” the company develops, manufactures, sells and services medical equipment and solutions across diabetes management, diagnostics, life sciences and healthcare services. The PHC Group’s consolidated net sales in FY2019 was 272.6 billion yen with global distribution of products and services in more than 125 countries.
About Ascensia Diabetes Care
Ascensia Diabetes Care is a global specialist diabetes care company, dedicated to helping people living with diabetes. Our mission is to empower people living with diabetes through innovative solutions that simplify and improve their lives. We use our innovation and specialist expertise in diabetes to develop high quality solutions and tools that make a positive, daily difference for people with diabetes.
Home to the world renowned CONTOUR® portfolio of blood glucose monitoring systems, our products combine advanced technology with user-friendly functionality that help people with diabetes to manage their condition.
Ascensia Diabetes Care was established in 2016 through the sale of Bayer Diabetes Care to PHC Holdings Corporation. Ascensia Diabetes Care products are sold in more than 125 countries. Ascensia Diabetes Care has around 1,700 employees and operations in 31 countries.
©2020 Ascensia Diabetes Care Holdings AG. All rights reserved. Ascensia, the Ascensia Diabetes Care logo and Contour are trademarks and/or registered trademarks of Ascensia Diabetes Care Holdings AG.
The Eversense® brand of continuous glucose monitoring (CGM) systems are indicated for continually measuring glucose levels in persons age 18 and older with diabetes. The Eversense® CGM System, available in the U.S. is indicated for up to 90 days and as a replacement of fingerstick blood glucose (BG) measurements for diabetes treatment decisions. Fingerstick BG measurements are still required for calibration twice per day, and when symptoms do not match CGM information or when taking medications of the tetracycline class. The Eversense® XL CGM System, available outside of the U.S., is indicated for up to 180 days and is intended to complement, not replace, fingerstick blood glucose monitoring. The sensor insertion and removal procedures for both systems are performed by a health care provider. The Eversense and Eversense XL CGM Systems are prescription devices; patients should talk to their health care provider to learn more.
Senseonics Holdings, Inc. is a medical technology company focused on the design, development and commercialization of transformational glucose monitoring products designed to help people with diabetes confidently live their lives with ease. Senseonics' CGM systems, Eversense® and Eversense® XL, include a small sensor inserted completely under the skin that communicates with a smart transmitter worn over the sensor. The glucose data are automatically sent every 5 minutes to a mobile app on the user's smartphone.