Let’s keep our eye on the real prize

Yesterday social media went wild with the President’s announcement that co-payments for insulin would be capped at $35 per month for Medicare patients. Many on the left rather than rejoicing in this news scolded the President for what is a politically motivated attempt to get the senior vote. According to most polls the President trails Biden in this important voting bloc. The President knows seniors vote, he knows he’s behind in most polls and this is an election year and he wants to keep his job.

Regardless of anyone’s political beliefs it’s just plain foolish . . .

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Virtual ADA

With the Memorial Day holiday now behind us summer beckons and our attention turns to the upcoming virtual ADA. Under normal circumstances this would be cause for celebration as the diabetes world would have gathered in this great city of Chicago. Yet as we all know these are not normal circumstances and while this city is still great it would be greater if our mayor opened up the lakefront, but that my friends is a story for another day. So let’s get back to the wacky world of diabetes and what we might expect this year.

First on the . . .

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What’s the outlook for Digital Health?

As the economy slowly reopens pretty much everyone is wondering what the new “normal” will look like. About the only thing that’s certain is life won’t go back to the way it was before COVID. Just as new procedures were put in place after 9/11 to protect our safety, new procedures will be put in place to protect our health. As we have become used to the procedures put in place after 9/11, we too will learn to accept procedures being implemented due to COVID.

The question we have will the increased use of digital health . . .

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Crazy Times

Who would have predicted that on a day when Medtronic reports earnings it would be a secondary story in our wacky world. Before we get into the bigger news, which will come in a sperate post let’s take a look at the Medtronic earnings which for their diabetes unit continue to struggle. According to one of the slides used during the call;

“U.S. Revenue: Declined high-teens, primarily due to new patient starts delayed by closing of physician offices, and competitive challenges”

The earnings release states;

“Diabetes Group fourth quarter revenue of $570 million decreased 9 percent as . . .

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More bad news for Medtronic

Not like we needed any additional evidence that the Medtronic diabetes franchise is having a very difficult time more came along yesterday when IntriCon, one of their key suppliers reported results. Per the earnings release;

“Revenue in IntriCon’s Medical business in the first quarter of 2020 was $16.4 million, a decrease from $20.8 million in the comparable prior-year period. The year over year decline was driven primarily by the COVID-19 impact on diabetes, one-time revenue recognition adjustment, partially offset by medical coil demand.”

Just as a reminder Medtronic is Intricon’s single largest customer . . .

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No third option

We have to admit that we are more than dumbfounded at the incredible rise that Livongo is experiencing. Perhaps we should rephrase that as we witnessed something similar with Tandem but with Tandem there was a reasonable explanation as to why their shares went from the outhouse to the penthouse. With Livongo however there is no reasonable explanation.

Therefore we have concluded this is setting up as perhaps the greatest short of all time, and that’s saying something for we used to believe that while Tandem was sinking, they were the greatest short of all time. The other . . .

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The other side

Before we take our walk through the wacky world today it’s worth mentioning that this mornings unemployment numbers came and another 2.9 million jobs lost bringing the total up to 36.5 jobs lost thanks to COVID. We continue to mention the numbers not as reminder of how bad things are economically rather the long road we have ahead of us. Each day that passes with each piece of economic news tells us that this V like recovery so many expected is pure fantasy.

These numbers also continue to reinforce our belief that the Livongo was overly aggressive . . .

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What this really means

Yesterday Dexcom priced their “upsized” convertible note offering to a little over a billion bucks. Originally the company was seeking a puny $850 million. Also yesterday Insulet priced their $500 million stock offering and for good measure this morning Tandem priced their $250 million of convertible senior notes. Between these offerings the Three Amigos will have collectively raised over $1.7 BILLION hence the happy dance by all the various underwriters.

Going into trading today here’s how the Three Amigos are doing on a year to date basis;

Dexcom is the lead horse up almost 82%, Tandem is . . .

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Why it happens

Vernon Law a professional baseball player once said; “Experience is a hard teacher because she gives the test first, the lesson afterward.”

We thought about this quote when we read the earnings released today from DarioHealth. Just in case anyone isn’t familiar with the company and not sure how anyone couldn’t be as they issue press releases almost every day. Dario makes the My Dario BGM yet in an attempt to remain relevant is transitioning to become another Livongo or OneDrop.

Per the earnings release;

"In the first quarter of 2020, Dario executed in line with its multi . . .

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Unmitigated gall

To be honest we’re not sure why we continue to write about these morons at Nemaura Medical. Maybe it’s because they threatened to sick their lawyers on us, and we just can’t resist the chance to expose them for what they really are. Momma Kliff did not raise her son’s to be afraid especially when we have the facts on our side. As she said many times people with nothing will scream the loudest those who have the facts on their side don’t have too.

Check out the latest outrageous very loose with the facts . . .

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