EOFlow faces a setback in its plan to enter the U.S. market as a U.S. court has granted a preliminary injunction filed by Insulet for patent infringement. The picture shows EOFlow's wearable insulin pump, EOPatch.
EOFlow faces a setback in its plan to enter the U.S. market as a U.S. court has granted a preliminary injunction filed by Insulet for patent infringement. The picture shows EOFlow's wearable insulin pump, EOPatch.

Korean individuals with type 1 diabetes are pushing back against the decision to suspend the domestic sales of EOPatch, a wearable insulin pump product made by EOFlow embroiled in a patent suit in the U.S.

A patient organization has filed an amicus brief with a U.S. court seeking to overturn the ban.

On Wednesday, the Korean Association of People with Type 1 Diabetes said it has submitted a position paper to the U.S. District Court for the District of Massachusetts, a court with jurisdiction, requesting that the ban on the sale of EOPatch in Korea be lifted until a substitute or alternative is available.

"On Oct. 10, 2023, the sale of EOPatch in Korea was suddenly suspended. Patients in our organization were confused and frustrated that we were unable to contact EOFlow for a day. It wasn't until a day later, on Oct. 11, that we were informed that sales were suspended due to a legal dispute between Insulet Corp. and EOFlow."

It went on to say, "We were angered with EOFlow for pulling the plug without warning, but we were even angrier at Insulet for asking to stop the sale of EOPatch in Korea, where their product Omnipod is not even sold. Type 1 diabetics in Korea have requested Insulet to sell Omnipod in Korea several times, but Insulet has refused, citing the small market here.”

The organization pointed out that since then, EOPatch has been licensed and sold in Korea, becoming a necessary blood glucose management device for people with type 1 diabetes because it is a patch pump without tubes and it reduces the pain of injections. "Especially, children with type 1 diabetes who have a fear of injections, this is the only product they use," it said.

The patient group noted that a legal battle between the two companies has left Korean type 1 diabetes patients who use EOPatch suddenly without access to the product, and since there are no insulin pumps in Korea other than EOPatch, they have no alternative if its supply is abruptly discontinued.

"We think it is inhumane that Insulet did not sell (Omnipod) in Korea based on the logic of marketability, but requested a sales ban in Korea where its products are not sold," the group said.

A medical device company should prioritize the health and safety of its patients above all else, it said, calling for the ban on EOPatch sales in Korea to be lifted.

In a public filing on Tuesday, EOFlow said it had suspended production, marketing, and sales of EOPatch products, except for its activation device, EOPump. The amount of the suspended sales is about 2.7 billion won ($2.1 million), accounting for 39.86 percent of EOFlow's revenue last year.

The suspension follows the granting of a preliminary injunction against Insulet's overseas intellectual property infringement and unfair competition lawsuit on Oct. 7. In August, EOFlow said that Insullet, a U.S. wearable insulin pump developer, had filed an intellectual property infringement and unfair competition lawsuit against the company.

According to EOFlow, the cited injunctive relief seeks to enjoin Insulet from manufacturing, marketing, or selling any products developed or produced using or relying on Insulet's trade secrets, and from disclosing Insulet's trade secrets to any third party.

EOFlow explained that it has not infringed on Insulet's trade secrets, but since there is a dispute between the two companies over trade secrets, the company said it had decided to suspend production, marketing, or sales of EOPatch products to minimize legal risks in future litigation.

In consultation with its U.S. and Korean litigation counsel or legal advisors, EOFlow will actively review the preliminary injunction decision, including an appeal, and establish and implement an active response strategy to win the main lawsuit. In addition, the Korean company will also take measures to revive its production, sales, and marketing outside of the lawsuit.

On the other hand, in response to the suspension decision, the Korea Exchange said that it believes that EOFlow has triggered a substantive review of its listing eligibility, and as a measure to protect investors, it will suspend trading of EOFlow's shares from Wednesday to the substantive review of its listing eligibility is finalized.

The lawsuit and the suspension of trading shares will also likely impact Medtronic's acquisition of EOFlow. The two companies have been in talks for the acquisition since May. Medtronic plans to become the largest shareholder of EOFlow by acquiring more than a majority of the latter’s outstanding shares by participating in a third-party placement of shares.

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