Faced with formidable competitors and rising development costs, Smiths Medical said Wednesday it plans to stop selling insulin pumps, devices used by patients to manage diabetes.
The news means 51 people will immediately lose their jobs nationwide, 13 of them at the company's Arden Hills global headquarters, which employs 600.
The reductions will come primarily in sales, marketing and, to a lesser extent, clinical services, customer support and manufacturing.
The company, which sells the Deltec Cizmo line of pumps, said the diabetes business has little synergy with the rest of its businesses largely because it is a direct-to-consumer enterprise. In addition, the company said "significant ongoing investments" would be required to stay current with emerging technology.
The market is dominated by Fridley-based Medtronic Inc. and New Jersey-based Johnson & Johnson.
Smiths Medical said patients with the Deltec Cozmo pump should consult their health care provider to choose a pump from another manufacturer as warranties run out on the pumps.
Smiths said it will help customers transfer purchases of cartridges and infusion sets to national and regional distributors that stock them.
The company does not break out sales of insulin pumps and supplies. But its parent company, London-based Smiths Group, said today that half-year results for the division were about $52.4 million.
For more information, patients should contact the company's customer support team at 800-826-9703.
JANET MOORE
