Senseonics has completed the restructuring of its commercial operations to take internal control of sales and marketing for its Eversense 365 continuous glucose monitoring and implantable device, after these responsibilities had been covered by an exclusive distribution agreement with Ascensia Diabetes Care since 2020. The company began managing sales and marketing in the United States in January and completed the transition of its European commercial operations in June.
The move coincided with the company announcing its best second quarter in its history, after revenue exceeded $14.5 million, more than double the previous level. In an interview with MedTech Dive, CEO Tim Goodnow and CFO Rick Sullivan said the transition gives the company greater control over its business and greater speed in implementing changes.
275 Employees Transfer to Senseonics
Over the past five years, Senseonics had focused on designing, developing and manufacturing Eversense products, while Ascensia, a subsidiary of Japan’s PHC Holdings, handled global marketing and sales efforts under a revenue-sharing arrangement. The agreement ended on December 31 of last year, and Senseonics began reintegrating the commercial organization into the company the following day.
Senseonics had approximately 125 employees as of December 31, then 150 employees from Ascensia joined it on January 1, including marketing leaders and employees and sales representatives who continued driving Eversense 365 sales in the United States.
In Europe, the company established its own subsidiaries and commercial operations in Italy, Germany, Spain and Sweden. It began hiring a dedicated sales force in April, before all relevant Ascensia employees transferred to it on June 1, placing European commercial marketing operations fully under Senseonics’ management.
Operational Flexibility and Better Margins
According to Sullivan, the new structure enables direct collaboration between research and development teams and commercial teams, while reducing layers of bureaucracy and reporting and accelerating the implementation of changes. Financially, the company no longer pays a distributor margin to Ascensia, allowing it to record greater revenue from each sensor and supporting improved gross profit margins.
Sullivan said ending the agreement is intended to build an integrated business controlled by Senseonics, from designing, developing and manufacturing Eversense through marketing and selling it.
Developing a Fully Implantable Sensor
Goodnow explained that the company is working on what he described as the final technical step toward a device that is completely invisible to people with diabetes. The current version relies on an external power source and Bluetooth module, while Senseonics is moving toward developing a small, fully implantable sensor that can operate for one year and communicate directly with a phone.
The Eversense 365 sensor has a one-year lifespan, making reliability particularly important; an implanted sensor cannot be easily replaced if it fails or becomes detached, unlike sensors placed through the skin. The company also said it has worked to improve the accuracy of alerts related to low glucose levels.
Users and Target Market
Goodnow said that approximately 90% of current product users had previously used continuous glucose monitoring devices, meaning most are switching from competing devices. Some of the demand is associated with Medicare patients, particularly those with type 2 diabetes, who are seeking an alternative that does not require changing the sensor every 10 to 14 days or dealing with adhesive problems.
The company also said it is performing well among younger and more active users, including people who exercise, swim or sweat heavily. Senseonics believes that expanding Medicare coverage for continuous glucose monitoring devices to include people with type 2 diabetes who do not use insulin could open the market to all approved companies, although this expansion remains linked to the availability of reimbursement.
Although the company designed its sensor to be capable of measuring multiple indicators, Goodnow said Senseonics is currently focused on glucose, given that its market is worth $14 billion and continues to grow, and because the company remains smaller than competitors such as Abbott and Dexcom.