Under the agreement, Insulet will be responsible for the development, design and approval of the integrated device.

Insulet president and CEO Duane DeSisto said their team has commenced development efforts on a new PDM which they expect to market in 2013.

"The new integrated PDM will work with the next generation OmniPod, which is currently awaiting 510(k) clearance," DeSisto said.

The OmniPod is an easy-to-use tubeless insulin pump that features just two parts and fully-automated cannula insertion.