Build it, support it and get it paid for
Upon arriving in hot and muggy New Orleans for the first live in person ADA in two years it was time to sit down with some good friend’s key opinion leaders all. Naturally the discussion turned to all the way cool whiz bang shiny new toys around. One opined that we would see a real non-invasive CGM within 5 years that it was just a matter of time before this...
A deep breath
Typically, we need to decompress after ADA and not before but given the whirlwind of events leading up to this year’s show today hopefully will be a no news day. Considering everything that has, or should we say has not happened the market appears to be taking things in stride. Our gut tells us this is a temporary lull in the action, that much more wackiness is coming. A few...
This keeps getting better
Not like we needed more reasons to anticipate ADA here’s another; “Abbott (NYSE: ABT) today announced the U.S. Food and Drug Administration (FDA) cleared its next-generation FreeStyle Libre 3 system for use by people four years and older6 living with diabetes.” It’s ironic that this approval comes at the same time Dexcom states they are not hooking up with Insulet. It’s also ironic that the Libre3 is approved before the G7 yet...
Break Up or Time Out?
“Like many companies, Dexcom’s Board and management team regularly review opportunities to enhance stockholder value and create benefits for customers, including through mergers and acquisitions. It is generally our policy not to comment on rumors or speculation, however, in light of recent sustained media and market speculation as well as the upcoming American Diabetes Association conference, we wish to confirm that Dexcom is not in active discussions regarding a merger...
The week that was, the week ahead
As we honor those who paid the ultimate sacrifice let us also take a moment to remember the many lives lost to mindless violence. Given the many divisions in this country it’s difficult to see a path forward, a true solution to what is a real and very disturbing problem. The events that unfolded in Texas and Buffalo make our little corner of the world seem inconsequential. This is not the...
Is it worth it?
The real question that should be asked about the possible Dexcom acquisition of Insulet is it really worth it? Now it’s obvious that Insulet and their stakeholders would be big winners here. Dexcom would likely pay a 15% premium to acquire Insulet which would require some serious dilution to Dexcom stakeholders, and we’d imagine another 20% or so chopped off the stock price. So just what exactly does Dexcom get?...
The price to play
Typically, we wouldn’t spend too much time covering Medtronic earnings. The die has been cast for this struggling unit long ago. Yet things are slightly different now that Dexcom and Insulet are discussing a deal. Before we go into what today’s earnings announcement means let’s take a quick look at the numbers. “Diabetes fiscal year 2022 revenue of $2.338 billion decreased 3% as reported and organic. Diabetes fourth quarter revenue of...
The day after
Although nothing official has been announced many seem to believe that the Dexcom acquisition of Insulet is a fete accompli. Which is interesting as today so far anyway Dexcom shares are recovering while Insulet are only slightly off. It should also be noted that Tandem shares are up today as well and yes Tandem is part of this deal. For our part we put the chance at this deal being...
In a pickle
Teddy Roosevelt once said, “If you’ve got them by the balls, their hearts and minds will follow.” This is the position Dexcom is in with Tandem. Tandem might not be thrilled about this now that Dexcom is rumored to be buying their fiercest competitor Insulet. We all know that the Control IQ has been a major hit and continues to steal customers from Medtronic with regularity. The Control IQ just...
ADA Just Got More Interesting
We were already looking forward to the upcoming ADA conference in New Orleans as it will be the first live in person diabetes confab in over two years. Now we are REALLY looking forward to it as late yesterday Bloomberg report that Dexcom was in talks to acquire Insulet. Before we discuss the impact of this POSSIBLE deal let’s talk about what we know to be true. 1. Besides my phone...