Less than two years after paying $200 million for diabetes pump developer Medingo, Roche's diagnostic division ($RHHBY) is shutting down the company and transferring its operations from Israel to Europe.
The Israeli newspaper Globes reported the news Jan. 22.
Roche's acquisition of the Israeli company gave it some nifty technology--a semi-disposable insulin-dispensing patch and a remote control to adjust insulin delivery. FierceMedicalDevices reported back in 2010 that Roche had hoped to launch the tech globally by 2012, assuming it received necessary approvals. Globes said that Medingo's tech, after a delay, is still slated to reach various markets within a few months.
As far as what will happen to Medingo and its 100 employees, Globes quotes "sources" as saying that Roche is consolidating insulin pump research and development activity in Europe as part of a substantial restructuring effort. Most of Medingo's employees have been offered new jobs in Europe.
Globes speculated that Israel's development capabilities were likely outweighed by Roche's need to cut costs.
- here's the Globes story