By Senad Karaahmetovic

Dexcom (NASDAQ:) is in talks to buy out diabetes device maker Insulet Corporation Bloomberg reports that the NASDAQ is:

The companies are still negotiating the deal. An agreement may be reached in the next few weeks. The report stated that there is no guarantee the deal will close.

As of Monday’s close, Insulet and Dexcom had market valuations of $14.1 billion and $31.8 billion, respectively.

After years of success, Dexcom, Insulet and other healthcare companies have been struggling to make deals.

High market volatility and increased uncertainty caused by macroeconomic factors have led to a decrease of 55% in healthcare deals.

The deal, if it is closed would make the company a major in the medical devices industry.

Dexcom and Insulet already have a partnership through which Insulet’s delivery system integrates into Dexcom’s glucose monitor, allowing the insulin to be automatically dispensed into patients’ bodies.

Dexcom will receive a closed-loop solution that it can use to provide diabetes treatment services and diagnoses.

Stifel analyst Mathew Blackman believes the market “is likely going to need time to digest the longer-term value creation potential of this “rumored” combination and is more likely to focus, near-term, on the specter of a meaningful equity and/or debt raise needed to fund this deal.”

The analyst adds that the timing is “odd” amid the just-announced CEO departure. Blackman offered some thoughts about the valuation.

“From a purely business model standpoint, PODD’s recurring revenue model matches well with DXCM’s business model and both have similar GM profiles (68.6%/ PODD: 68.4% in 2021). Still, even at the current depressed PODD $14B valuation, DXCM would have to raise a significant amount of capital ($2.7B of cash on the DXCM balance sheet) in a highly uncertain capital market backdrop,” the analyst said in a client note.

Insulent shares rose 10% Tuesday morning in pre-market trades due to the Bloomberg report. Dexcom shares have fallen by more than 7%.