Medtronic has received an investment of $337m from Blackstone Life Sciences to scale up the development of its upcoming diabetes technologies.

According to the agreement, Medtronic will receive the investment over the next several years to fund its four diabetes research and development (R&D) programmes.

The engineering, clinical and regulatory teams of the company will carry out the development work to activate the programmes.

The funding received will be equal to the R&D expenses incurred. Upon the commercialisation, Medtronic will pay royalties, which are expected to be in the low to the mid-single-digit range as a percentage of sales.

Additional terms of the arrangement were not disclosed.

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.

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“The added investment from Blackstone empowers us to pull forward specific programmes in our pump and CGM pipeline that aim to address unmet patient needs, beyond PCL and Synergy.”

Medtronic noted that its diabetes device portfolio is designed to improve patient outcomes and provide greater lifestyle flexibility to Type 1 diabetes patients.

Approximately 22 million individuals globally and 1.5 million individuals in the US are said to be affected by Type 1 diabetes.

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.”