MTD Group Acquires Ypsomed's Pen Needles, Blood Glucose Monitoring Systems
The acquisition of Ypsomed’s pen needles and blood glucose monitoring system is expected to increase MTD’s production capacity to over 2.5 billion units.
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MTD Group has completed its acquisition of Ypsomed's Pen Needles and Blood Glucose Monitoring Systems businesses. According to the company, the acquisition is poised to increase MTD’s production capacity to over 2.5 billion units. The company also stated that by implementing Ypsomed’s operations into its European network, its diabetes and obesity care portfolio will be enhanced as a result. Moving forward, MTD plans on investing in the development of production facilities in Europe, aiming to boost capacity and quality while enhancing its ESG credentials.1
"The completion of this acquisition marks a transformative moment for MTD Group. By integrating Ypsomed's Pen Needles and Blood Glucose Monitoring businesses, we solidify our position as a global leader in diabetes care and establish ourselves as the second-largest producer of pen needles worldwide. This strategic move enhances our ability to deliver innovative, high-quality solutions to our customers and expands our reach into key markets. Our significant investments underscore our commitment to scaling our operations efficiently while maintaining the highest standards of quality. We are excited about the opportunities this acquisition presents and remain dedicated to advancing the future of diabetes care," said Charles Bouaziz, CEO, MTD Group, in a press release.
First announced back in March, the acquisition is also expected to reach three billion new customers in both China and India, while enhancing its presence in established markets, including North America, Germany, and France.1,2 During the negotiation process, MTD was supported by Studio Legale LCA for the legal aspects, with Roberto de Bonis, Sara Consoli, and Mario Niggeler for operations.1
Last year, the global pen needles market size was approximately $3.52 billion, increasing to $3.94 billion this year. By 2033, the market is expected to increase to $10.85 billion, expanding at a compound annual growth rate of 11.9% through 2033. In the coming years, the Asia-Pacific region is expected to experience the most significant growth in this area. Additionally, Europe held the largest share in 2023, equaling 38.14% total. The increase can be attributed to a number of factors such as:
- Increasing diabetic prevalence
- Advancements in needle technology
- Large number of aging people
- Preference for self-administration
- Rise in obesity rates
- Increased awareness and education
- Global pandemic impact3
"This acquisition will enable us to accelerate growth and enter new strategic markets, leveraging a broader product portfolio combining the 6-bevels and click technologies from Ypsomed and MTD's thinnest and shortest 34G pen needle. We will integrate Ypsomed's pen needles operations and BGMs' commercialization into our European production and distribution sites, contributing to scale efficiencies and benefiting from our category expertise,” said Bouaziz, in a press release. “This acquisition enables MTD to open new, strategic markets, such as Germany, expand into high growth markets like China and India and strengthen our position in other important markets such as North America and France, reinforcing our commitment to supporting millions of diabetic patients, caregivers, and healthcare professionals worldwide."
References
1. MTD Group completes the acquisition of Ypsomed's Pen Needles and Blood Glucose Monitoring Systems and announces a significant investment plan for its European production sites. PR Newswire. August 2, 2024. Accessed August 5, 2024. https://www.prnewswire.com/news-releases/mtd-group-completes-the-acquisition-of-ypsomeds-pen-needles-and-blood-glucose-monitoring-systems-and-announces-a-significant-investment-plan-for-its-european-production-sites-302212255.html
2. MTD acquires Ypsomed's pen needle and BGM businesses, strengthening its leading position in diabetes care. PR Newswire. March 27, 2024. Accessed August 5, 2024. https://www.prnewswire.com/news-releases/mtd-acquires-ypsomeds-pen-needle-and-bgm-businesses-strengthening-its-leading-position-in-diabetes-care-302100976.html
3. Pen Needles Market Size, Share, and Trends 2024 to 2033. Precedence Research. Accessed August 5, 2024. https://www.precedenceresearch.com/pen-needles-market#:~:text=The%20global%20pen%20needles%20market,11.9%25%20from%202024%20to%202033.
