Embecta (Nasdaq:EMBC) today announced that it’s bowing out of a significant diabetes technology market amid a new restructuring effort.

Our sister site, Drug Delivery Business News, reports that the BD Diabetes spinoff is discontinuing its insulin patch pump program. This decision also includes a significant restructuring that will lead to a workforce reduction, although Embecta has yet to divulge details on how many employees that change affects.

Despite winning FDA approval for a disposable patch pump system in September and long touting a closed-loop automated system under development, the company elected to depart the market that features the leading Insulet Omnipod platform of pumps and also has expected entries from Medtronic and Tandem Diabetes Care in the future.

Discontinuing the patch pump program also comes not long after rumors of the company exploring a sale began circulating in July.

In spite of the discontinuation, Embecta reported strong fourth-quarter results that came in ahead of the consensus forecast on Wall Street. Shares of EMBC ticked up 4.3% to $14.41 apiece before hours after the company announced the discontinuation as part of its fourth-quarter earnings results.

BTIG analysts Marie Thibault and Sam Eiber called Embecta’s fourth-quarter performance “impressive” as it beat expectations. But, they were taken aback by the decision to cut off the insulin patch pump program. “This is something many investors we have spoken to over the past several quarters have wanted to see, as there was skepticism about the attractiveness of this market for [Embecta] and the level of spending needed to compete effectively.”

Get the full story at our sister site, Drug Delivery Business News.