BY Fraser Tennant
As part of a plan to be taken over by its creditors, blood glucose monitoring device manufacturer LifeScan has filed for Chapter 11 bankruptcy protection under a prearranged restructuring support agreement (RSA).
Through the RSA, LifeScan expects to reduce more than 75 percent of its $1.275bn debt, which will enable the company to accelerate strategic investments that will support the future of the business.
LifeScan’s international subsidiaries are not included in the Chapter 11 filing in the US.
LifeScan expects to emerge from the bankruptcy process under the majority ownership of a group of the company’s existing lenders, with whom it has had a longstanding and productive relationship. The company’s financial partners recognise the strong and growing potential of the glucose management industry, and through this process have committed their support for LifeScan’s go-forward strategy.
A global leader in blood glucose monitoring and digital health technology, LifeScan’s OneTouch brand products help more than 20 million people with diabetes and their caregivers around the world improve the quality of life for people with diabetes with products and digital platforms defined by simplicity, accuracy and trust.
“This balance sheet restructuring will significantly strengthen LifeScan’s financial position, enabling us to continue serving more than 20 million customers across 50-plus countries and put new growth strategies in place,” said Valerie Asbury, chief executive of LifeScan. “With a stronger financial foundation upon emerging from this process, LifeScan will be better positioned to invest in its global business.”
This investment will see LifeScan continue to prioritise product availability and superior customer service as it works proactively to become one of the most comprehensive players in the glucose management industry. As part of this effort, the company intends to accelerate strategies in the US market that offer both stronger economics and more predictable patient access.
“In the US, we will continue to take action to expand access to OneTouch so consumers can continue to manage their health with our reliable and affordable products, without the need for a prescription,” continued Ms Asbury. “We recognise that our products are essential for people with diabetes to make life-sustaining decisions and are evolving our model to bring products and services to market through multiple channels.”
LifeScan intends to operate in the ordinary course throughout the restructuring proceedings and anticipates emerging by the end of 2025, with a strengthened balance sheet and enhanced liquidity to support its US and international growth initiatives.
Ms Asbury concluded: “LifeScan is deeply grateful for the partnership of its lenders and sponsor and the unyielding commitment of its employees, which will enable it to become a stronger company and create a world without limits for people with diabetes.”
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