Ypsomed has begun a deal to sell its diabetes care business for up to CHF 420 million (about $517 million) to TecMed, a Swiss company controlled by Willy Michel. The company is selling Ypsomed Diabetes Care AG, including subsidiaries, patch pump development activities, and related rights.

Ypsomed said it’s making the sale to focus on strengthening its market position for subcutaneous self-injection solutions for pharma and biotech companies. Proceeds from the sale will be used to finance the injection system business’ expansion.

In November, the company declared it was beginning a sales process for its diabetes care business. TecMed emerged as the best partner after a marketing phases that involved potential strategic and financial buyers in a structured auction process.

Last summer, Ypsomed sold its pen needle and blood glucose monitoring businesses to MTD (Medical Technology and Devices).

TecMed said it plans to combine Ypsomed tube pump system mylife Loop, including the mylife YpsoPump and the automated insulin delivery (AID) solution mylife CamAPS FX, with its patch pump program to create a diabetes care leader dedicated to insulin infusion systems. The combined company will be headquartered in Burgdorf, Switzerland with space for about 300 employees.

“Our vision is clear: to empower persons with diabetes through choice and innovation in their therapy options,” said TecMed CEO and chief corporate services officer Patrick Schär. “The experience of Ypsomed Diabetes Care as a pioneer in insulin pump therapy will be the ideal set-up for the future launch of our patch-pump.”

About 200 employees currently working in Solothurn will move to Burgdorf later this year. The transaction is expected to close in the second half of 2025.

Ypsomed is investing in two new production halls, a new tool shop, and a conference center at the Solothurn site, which will also be accessible to the public.

“We are focusing on capturing substantial opportunities in the subcutaneous self-injection market and expanding our global production capacities,” said Ypsomed CEO Simon Michel. “Our fundamental growth drivers—the increasing popularity of selfcare, as well as the rise of biologics and biosimilars—continue to offer enormous potential. Thanks to our automated and scalable processes, we are well positioned to significantly participate in this growth.”