Animas to close, lay off 400

J&J subsidiary fails to find buyer, Chesco operations to close

TREDYFFRIN » Animas Corp. said Thursday it intends to exit the insulin pump business and discontinue the manufacturing and sale of its Vibe and OneTouch Ping insulin pumps.

The decision will affect around 400 workers nationally, about half of whom work at the company’s Chesterbrook and West Chester area operations.

“This decision was extremely difficult and comes following an extensive exploration of all viable other options for the Animas business,” the company said in announcing the move. “We have selected Medtronic as our partnerof-choice to facilitate a seamless insulin delivery system transition period. One of the reasons we chose Medtronic as our partnerof-choice is because of its strong track record providing outstanding patient care and support. For over 30 years, Medtronic has been a global leader in the treatment of those living with diabetes, and we

are confident that they will provide outstanding support to our patients and their care teams.”

The company said patients in the U.S. and Canada using Animas pumps and pump supplies will continue to receive support and services for a time. Some 90,000 patients are estimated to use the pumps. It also will honor pump warranties.

“We recognize that patients living with diabetes rely on our products to provide critical care, and we want to reassure patients and their care teams that we will be there, every step of the way, throughout this process,” the company said in the statement.

Patients using a pump with a warranty that expires on or after Sept. 30, 2019, will be contacted by a member of the Medtronic transition team concerning the option to transfer to a Medtronic 630G insulin delivery system at no cost, Animas said.

Animas will continue to honor warranties that expire before Sept. 30, 2019, until customers transition to a new pump.

Animas, Johnson & Johnson’s diabetes care unit, said it took the action to close after failing to find a buyer.

Animas will continue to sell its insulin pumps outside of the United States and Canada for a period of time, J&J spokeswoman Bridget Doherty told Reuters on Thursday.

J&J has been reviewing strategic options, including a potential sale of its diabetes care division, which includes LifeScan Inc., Animas and Calibra Medical Inc.

The division reported sales of $421 million in the second quarter, down 10.6 percent from a year earlier, Reuters reported.

AP PHOTO/DAVID J. PHILLIP Stephanie Rodenberg-Lewis holds her Animas Corp. insulin pump at her home in Katy, Texas. The company announced Thursday it is closing operations in the U.S. and Canada.