Medtronic logo updatedMedtronic (NYSE:MDT) announced that it will increase research and development for its diabetes group through an agreement to receive $337 million from Blackstone.

The significant increase in R&D funding for the diabetes group is aimed at advancing new, innovative products designed to reduce the burden of diabetes management. The companies announced the agreement at the virtual 80th Scientific Sessions of the American Diabetes Association (ADA).

“This investment is important for people living with diabetes, as we expect it will expand our offering of future insulin delivery and sensor innovations that have the potential to improve patients’ management of their diabetes,” Medtronic executive VP & diabetes group president Sean Salmon said in a news release. “Over the past 12 months, Medtronic has significantly increased its investment in diabetes R&D, including investments in a series of near-term programs such as the MiniMed 780G insulin pump system, our personalized closed-loop (PCL) system, our extended wear infusion set, and our Zeus and Synergy sensors.

“The added investment from Blackstone empowers us to pull forward specific programs in our pump and CGM pipeline that aim to address unmet patient needs, beyond PCL and Synergy.”

Under the agreement, Medtronic will receive up to $337 million over the next several years to fund four identified diabetes R&D programs for which, due to competitive reasons, the company is not disclosing specifics. Funding is slated to be equal to the R&D expenses incurred and.

If the results of the programs are successfully commercialized, Medtronic will pay royalties expected to fall in the low-to-mid-single-digit range as a percentage of sales. Additional terms of the agreement were not disclosed.

“This collaboration, our first investment in the medical devices space, demonstrates how Blackstone Life Sciences is using its capital and expertise to help bring vital technologies, with the potential to save lives, to patients who need them,” Blackstone Life Sciences global head Nicholas Galakatos said. “We look forward to partnering with Medtronic, the leader in this space, to advance their next generation of innovative medical devices for diabetes patients.”