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The price of failure

It appears our wine drinking friends in France have gone on a deal binge. After spending $11. 6 billion to acquire Bioverativ Inc. the company doubled down and spent another $4.8 billion to acquire Ablynx NV, outbidding Novo Nordisk (NYSE: NVO) who had offered $3.1 billion for the company. Whether these deals work out for Sanofi (NYSE: SNY) remains to be seen. However, this deal binge does have serious implications...

No cure for…..

Before we get into our commentary let’s get the numbers out of the way as Tandem (NASDAQ: TNDM) released their amended S-1 which contained the following information. The company hopes to raise $46 million by issuing and we would recommend sitting down before you continue reading almost 13.5 million shares. Which lead the company to state “Investors purchasing in this offering will incur immediate and substantial dilution” which is the...

Separation?

Yesterday Abbott (NYSE: ABT) reported fourth quarter and full year results and of course the FreeStyle Libre continues to exceed expectations. The company noted they are adding 50,000 patients per quarter which as we noted yesterday is an accomplishment as they have just begun selling the Libre in the US and Canada. The company also noted they would be investing heavily in Libre coming out with updated versions in the...

Starting from the wrong premise

Yes, not a day goes by without us looking at yet another way cool whiz bang toy. Even though the insulin pump market is dominated by Medtronic (NYSE: MDT) it seems as if everyone wants to play in this sandbox. Same can said for CGM, even though Dexcom (NASDAQ: DXCM) and Abbott (NYSE: ABT) are well ahead in this expanding market everyone wants to jump in. Heck even with BGM...

The Irony

Yesterday we witnessed the end of era when Johnson and Johnson (NYSE: JNJ) released fourth quarter and full year results. Today we witnessed a reemergence of a once dead company when Abbott (NYSE: ABT) released fourth quarter and full year results. The short story here is that Abbott adapted to change while JNJ didn’t. Yes, we know its more complex than that, but Abbott read the tea leaves better than...

The End of an Era

We knew this day was coming it was just a matter of time. This morning Johnson and Johnson (NYSE: JNJ) released fourth quarter and full year results and for all practical purposes this once powerful company is no longer in diabetes. Yes, they still have Invokana but when it comes to diabetes devices the area where they used to shin darkness has set in. The decision has been made to...

Wine and Cheese

Now that Lilly (NYSE: LLY) has decided to enter the insulin pump market, one must wonder how long it will take Novo Nordisk (NYSE: NVO) and Sanofi (NYSE: SNY) to follow. We should note that Novo was an investor in Asante which failed and was bought by Bigfoot after they declared bankruptcy. Yes, if there is one thing we count on in this wacky world it’s there is no such...

No surprise here

Today both U S News and Reuters are reporting that Johnson and Johnson (NYSE: JNJ) are considering selling LifeScan for $3.4 billion. According to these reports; “Among the potential bidders is a consortium being formed by Shenzhen-listed Sinocare Inc, which develops and manufactures blood sugar monitoring systems, and China Jianyin Investment Ltd (JIC), a unit of sovereign wealth fund China Investment Corp. The group has hired an advisor to work on...

Dear Mr. Ricks

Given the news that Tandem (NASDAQ: TNDM) is once again hitting the capital markets combined with Lilly (NYSE: LLY) getting set to enter the insulin pump market we thought it would be a good idea to give Lilly CEO Dave Ricks a glimpse of the future. See Mr. Ricks seems to believe that his way cool whiz bang cloud enabled toy will do what no other whiz bang way cool...

Watch Out Below

What happens when you’ve shopped your company to anyone and everyone but have yet to find a buyer? What happens when no one wants to lend you any more money? To add insult to injury market conditions aren’t getting better they are getting worse. The competition isn’t just getting bigger gobbling up more market share they are also making it more difficult for you to gain market share. Well if...