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Will Simpler Devices Tap the Largest Diabetes Market?

This article was originally published in Start Up

Executive Summary

The clinical community and the medical device industry are finally turning their attention to the majority of patients with diabetes: the type 2s. They're an underserved group in a potential market that dwarfs that of type 1 diabetes. Health Advances LLC believes that the next disruptive technology in diabetes management will come in the form of lower-cost, easy-to-use insulin pumps for the masses. And there are at least 16 such pumps in development. (See also the sidebar, CeQur: Conforming to the Lifesyle of the Type 2).

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At Last: Insulin Delivery Devices for the Bulk of the Diabetes Population

In the field of insulin delivery devices, there have been three financings in as many months, including that of Calibra Medical, Cequr and Tandem Diabetes. The push into insulin delivery speaks to a broader trend in device investing. Investors and entrepreneurs are focusing more and more on bridging the gap between existing high-end devices that treat only a small subset of patients and basic, low-cost, almost commoditized products aimed at larger patient populations. In diabetes both of these drivers are in full force. In fact, perhaps to an even greater extent than other diseases, diabetes lends itself to a consumer mentality because patients with diabetes have to take several steps every single day to manage their own care.

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