Medtronic has signed an agreement with Blackstone to secure $337m funding to increase the research and development (R&D) funding available to its diabetes group.

The medical device firm will receive the funding from funds managed by Blackstone Life Sciences, along with other co-investors.

The funds will be utilised in advancing new products designed specifically to reduce the burden of diabetes management.

Medtronic diabetes group executive vice president and president Sean Salmon said: “This investment is important for people living with diabetes, as we expect it will expand our offering of future insulin delivery and sensor innovations that have the potential to improve patients’ management of their diabetes.

“Over the past 12 months, Medtronic has significantly increased its investment in Diabetes R&D, including investments in a series of near-term programs such as the MiniMed 780G insulin pump system, our Personalized Closed Loop (PCL) system, our extended wear infusion set, and our Zeus and Synergy sensors.”

Recently, the company has secured CE mark approval for its MiniMed 780G hybrid closed loop insulin pump system to treat type 1diabetes in people aged between seven and 80 years.

Medtronic’s diabetes device portfolio is aimed at helping Type 1 diabetes patients

Medtronic said that its diabetes device portfolio has been designed to improve patient outcomes and provide expanded lifestyle flexibility to Type 1 diabetes patients.

Under the terms of the agreement, Medtronic will invest the proceeds to fund four identified diabetes R&D programmes. The company has not disclosed the specific development programs for competitive reasons.

Medtronic is leveraging its engineering, clinical, and regulatory teams to perform the development work to activate the identified programmes.

Once the products are commercialised, Medtronic would pay royalties, in the low- to mid-single digit range as a percentage of sales.

Blackstone Life Sciences global head Nicholas Galakatos said: “This collaboration, our first investment in the medical devices space, demonstrates how Blackstone Life Sciences is using its capital and expertise to help bring vital technologies, with the potential to save lives, to patients who need them.

“We look forward to partnering with Medtronic, the leader in this space, to advance their next generation of innovative medical devices for diabetes patients.”