Benzinga | Dec 28, 2020 04:08PM EST

Insulet Announces Has Settled Dispute With Former Exclusive European Distributor Ypsomed AG; Has Agreed To Pay Ypsomed An Additional One-Time Payment Of $36.15M, For A Total Expiration Fee Of $41.25M

Insulet Corporation ("Insulet" or the "Company") today announced that it has settled its dispute with Ypsomed AG, its former exclusive European distributor, which was the subject of arbitration proceedings before the International Chamber of Commerce, Court of Arbitration in Switzerland. Following the expiration of its distribution agreement with Ypsomed, Insulet was required to pay a quarterly per-unit fee for Omnipod sales to certain customers of Ypsomed for a one-year period through June 30, 2019. To date, Insulet has already paid $5.1 million of this expiration fee, which was capitalized as a customer relationship intangible asset on the Company's balance sheet. Pursuant to the terms of the settlement, Insulet has agreed to pay Ypsomed an additional one-time payment of $36.15 million, for a total expiration fee of $41.25 million. As disclosed in the Company's quarterly filings with the SEC, Insulet estimated that the final aggregate expiration fee could be up to $55 million. There are no other financial benefits or future payments to be made by Insulet relating to the disposition of this matter.