Potpourri

Being fans of Jeopardy, and honestly who isn’t a fan, we loved the category potpourri as it was a catch all for a wide range of questions. We also like the phrase as we used the title Mixed Bag after Insulet reported yesterday. Listen it’s not easy coming up with creative headlines when you write as often as we do. So with that being said let’s have at it.

1. The FDA concluded their inspection of the Biocon insulin manufacturing facility in Malaysia as the company prepares to launch along with their partner Mylan yet another biosimilar . . .

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A Mixed Bag

Given the way things have been unfolding it’s difficult to judge how much of the recent selloff is related to concerns over the coronavirus and its impact on the global economy and how much is company results related. The results released by Insulet this afternoon and the initial reaction of the street is an example of this. While revenues were strong, gross margins a key metric declined 60 basis points for the full year, down 290 basis points for the fourth quarter.

Frankly we aren’t surprised that shares have been selling off in after-hours trading given the . . .

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PIlling On

We really hate to do this, but we must take a look at these comments made yesterday by Mark Gorder CEO of IntriCon, who in case anyone has forgotten is the leading supplier for Medtronic’s CGM system;

“Our platform technology currently addresses several high-growth medical markets, including diabetes, drug delivery, surgical navigation, and hearing health. With regards to diabetes, Medtronic is our largest single customer, represented 60% of our total revenue in 2019.

Undoubtedly, we were affected throughout the year by the timing of their ongoing global commercial product launch of the 670G and the competitive pressures domestically . . .

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Tandem has the big MO

Judging by how the Street is reacting one just get the impression that Tandem’s results were below expectations. That the Control IQ isn’t just killing it and driving Tandem to new heights. Now to be honest we could care less what the Street thinks or how they react as they have been wrong so many times it’s ridiculous to even pay attention to what they do. Listen the results were just fine and pretty much what we expected.

We also suspect the company is taking a page from the Dexcom playbook preferring to lowball guidance only then . . .

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Captain Obvious Fly’s

Momma Kliff used to say there are many benefits to experience but there are some drawbacks as well. Along with experience comes a certain amount of snarky largely created by the been there done that syndrome. For example we all know that CGM is a truly transformational tool this is not and should not be news. However there are still people who seem astonished when, yet another study comes out and proves what we already know.

Take a look at this from our friends at Onduo –

“In a presentation at the 13th International Conference on Advanced Technologies & Treatments for . . .

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Observations from afar

While we are not attending ATTD in Madrid we have been following the conference on social media and communicating with people who are in attendance. Based on the feedback we’ve received we really haven’t missed all that much. With this being basically one huge toy fair it’s not surprising that social media is dominated with posts on CGM, pumps, etc. However a few items have caught our eye.

Believe it or not Roche might actually be dumb enough to launch the Solo. Now for those unfamiliar with the Solo it’s another OmniPod wannabe yet with a . . .

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Nothing really new here

With the ATTD conference getting underway expect lots of news about all the toys in the toy chest. This morning we learned that Insulet has signed two deals one with Dexcom and the other Abbott both regarding integrating their CGM systems into the coming Horizon system. None of this should come as a surprise given how all the toys are talking with all the other toys.

The other piece of non-shocking news come from the folks at DarioHealth who per a press release state:

“DarioHealth Corp. (Nasdaq: DRIO) ("DarioHealth" or "Dario"), a pioneer in the global digital therapeutics market . . .

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How many do we need?

So OneDrop goes out and hires two new executives one from Sanofi and the other from ResMed. They note that are expanding beyond diabetes into other chronic disease states. Please stop us if you have heard this before because you have heard this far too many times before. Is this not what Livongo is doing? What about OnDuo? What about Walgreens. CVS? Heck what about Amazon?

Just for grins and giggles let’s say that all this competition for patients with diabetes doesn’t drive prices down. Let’s also say that there are enough coaches to coach all these . . .

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Well it wasn’t all bad, ok maybe it was

The good news coming out of the Medtronic earnings announcement is that results confirmed what we already knew. Namely the Control IQ from Tandem is eating the 670G for lunch and as we predicted would adversely impact Medtronic sales. Now this isn’t likely what Medtronic wanted but it is the truth.

Looking at the Medtronic results it’s difficult to find a bright spot. Sales declined in the US by low double digits which was partially offset by growth in international markets. This sounds good on the surface until one considers that when it comes to insulin pump therapy . . .

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No surprises, no recalls all good

Given the way things have been going this week with the Medtronic recall and the Insulet notice it’s refreshing that the Dexcom earnings announcement had no surprises. Yes as Momma Kliff used to say surprises can be fun but dull isn’t so bad either. Although we wouldn’t exactly classify Dexcom’s earnings as dull as the company continues to click on all cylinders. If anything one has to wonder with their stock surging ahead can it sustain this momentum.

While there were several positive takeaways from the earnings and call the biggest was the continued progress . . .

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