Dexcom Reports
In a year when most conference calls have been about as exciting as watching paint dry, Dexcom (NASDAQ:DXCM) actually provided a call that was actually worth listening too. As Diabetic Investor expected Dexcom is like a fine race car hitting on all cylinders, system sales continues to increase, their next generation sensor is on track, their joint agreements with Animas and Insulet (NASAQ:PODD) remain on track and their hospital based system continues to move forward.
Looking ahead towards the remainder of 2010, Diabetic Investor sees the company solidifying their leadership position in continuous glucose monitoring while preparing the company for what could be their next big step; getting acquired.
Unlike their competition, Dexcom has proceeded methodically mastering the basics before moving onto more sophisticated endeavors. It will be interesting to see as they proceed forward who will step up and make a play for the company. As Diabetic Investor has previously reported we will soon new players entering the diabetes device world, particularly insulin companies who see the adding devices as part of their overall growth strategy. It wouldn’t surprise Diabetic Investor if Dexcom has already fallen into the sights of several potential suitors. The fact is Dexcom has more to offer than their competitors given their advanced systems knowledge and depth of product offerings.
On a somewhat related subject many have asked why Diabetic Investor remained silent after the recently completed FDA insulin pump meeting. The simple answer is we we’re out on vacation enjoying ourselves and did not attend the meeting. However, after speaking with several who did attend we’re glad we weren’t there as once again the FDA proved that it’s better to look like your actually doing something than actually doing something constructive.
Based on numerous reports from the meeting it’s becoming clear to Diabetic Investor that the FDA still remains clueless when it comes to even the basics of insulin pumps. The fact that one of the panel members was a pulmonologist is another prime example of just how badly this process needs to be reformed.
Finally we cannot leave this subject without commenting on the many reports coming out of the meeting where the FDA and presenters seemed content to place blame on those pesky patients who they seem to believe are the root of the problem. While Diabetic Investor understands that user error plays a role in the increased number of adverse event reports; we are equally aware that user error would be greatly reduced if the insulin pump companies, physicians and educators spent more time properly training patients on pump therapy.
The facts are that even with newer more patient friendly pump systems user error will remain unacceptably high if there are no changes made to how pump patients are trained. All these new, supposedly patient friendly systems will do is, make it easier for the poorly trained patient to screw up. To Diabetic Investor blaming the patient is as shameful as the folks at the Olympics who blamed the luger’s death on the luger, when even the world’s best luger crashed on this dangerous course during his practice runs. Like the folks at the Olympics who made several changes to the track after the fact, Diabetic investor sees the FDA following a similar path.
The reality here is it’s simpler for everyone involved here to place the blame for problems on those pesky patients. This is typical for the FDA and unfortunately far too many people associated with the insulin pump market, which see patients, those people who actually depend on the products they make, as the root cause of the problem. It is also a typical of the FDA who by blaming the patient does not have to truly address the real problem which is improving training. This isn’t leadership; it’s childish, immature and very dangerous.
