EOFlow loses appeal against Insulet in EU patent dispute, faces sales ban in 17 countries

EOFlow, the Korean medtech company known for developing Korea’s first and the world’s second wearable insulin pump, has lost its appeal against U.S. rival Insulet in an ongoing injunction case, leading to a sales and distribution ban across 17 European countries.

The company announced on Wednesday that the Unified Patent Court (UPC) dismissed EOFlow’s appeal against a previous injunction ruling related to intellectual property infringement claims filed by Insulet. The case centers on Insulet’s allegations that EOFlow’s wearable insulin pump, EOPatch, violates its patents.

Although the first-instance court had ruled in EOFlow’s favor last November by rejecting Insulet’s injunction request, the appellate court overturned that decision on April 30, siding with Insulet.

As a result, EOFlow is now prohibited from manufacturing, selling, using, importing, or storing the EOPatch in Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, and Sweden.

The UPC explained that EOFlow’s product competes directly with Insulet’s device, and that market losses—including price erosion and changes in market share—would cause substantial harm to Insulet. While acknowledging that patients using EOFlow’s device may face inconvenience, the court noted that alternative products are available and concluded that issuing the preliminary sales ban was appropriate to protect Insulet’s interests.

The UPC also ordered EOFlow to cover all legal costs from both the first-instance and appellate proceedings, amounting to 4.03 billion won ($2.86 million), which represents 18.77 percent of the company’s equity capital.

Additionally, EOFlow must provide Insulet with detailed written information regarding the origin and distribution routes of the EOPatch within four weeks.

This disclosure must include the names and addresses of all legal entities involved in the production and distribution of the product. Failure to comply could result in a fine of up to 100,000 euros ($108,000) per day. If EOFlow breaches the sales ban, the company could face penalties of up to 250,000 euros ($270,000) per violation.

EOFlow stated that it has retained legal counsel and is continuing the main litigation process in accordance with legal procedures.

Meanwhile, EOFlow's shares have been suspended from trading on the Kosdaq market since March 21 due to a disclaimer of opinion from its auditor.