Insulet to Divest Neighborhood Diabetes Supplies Business

Insulet is selling its Neighborhood Diabetes supplies business to mail order medical supply company Liberty Medical for $5 million in cash.

The deal — which is expected to close in the first quarter of the year — is subject to certain customary closing conditions, the company says.

Insulet adds that the transaction will enable the company to direct its resources toward driving continued growth of its OmniPod insulin management system.

Danielle Antalffy of Leerink Research says in a note that the move is a positive one, as it allows Insulet to focus on Omnipod while shedding a slower growth business. — Jonathon Shacat