Do the numbers even matter anymore?

Do the numbers even matter anymore?

As companies in the blood glucose monitoring market begin to report second quarter results the question has to be asked; do the numbers matter anymore? Everyone knows that revenues will be down and volume is barely growing. Everyone knows that companies will once again blame competitive bidding for their woes and use various forms of corporate speak to explain how things really aren’t as bad as they seem.

The most interesting earnings call won’t come until July 24th when Roche reports. As Diabetic Investor has previously reported according to multiple sources the company will spin off their beleaguered diabetes division as a private company. Yet other than this event it will likely be more of the same old, same old from Johnson and Johnson (NYSE:JNJ), Abbott (NYSE:ABT) and Bayer. Although given the way things are going one has to wonder if Bayer even knows they have a BGM unit.

Look at it this way everyone has a choice, people could ruin a perfectly good summer day and actually listen to these calls. Or they can just acknowledge that BGM is no longer worthy of their attention and go out play some golf.  To Diabetic Investor this is very easy choice.

It’s time to move on folks and acknowledge that BGM is going nowhere in a hurry. That the Fat Lady is singing loud and clear the BGM swan song. That this market will completely fall apart should the FDA follow through and demand that test strips be more accurate. Yep this is exactly what the market needs, increase manufacturing costs while reimbursement continues to decrease.  And for those who believe that demanding more accuracy will actually force some of the cheap imports out of the business, think again.

Diabetic Investor can’t pinpoint exactly when BGM begin its descent into oblivion but the seeds were planted years ago. It would easy to place the blame squarely on the shoulders of the BGM companies themselves. Yet as much as they deserve to be blamed they alone were not responsible for the market collapsing. Where was the American Diabetes Association (ADA) when Congress was considering competitive bidding? And what about all the studies that basically concluded there was no reason for patients with Type 2 diabetes to test at all.  Why didn’t the ADA step up and explain why these studies were flawed? Is this not the organization that is supposed to represent ALL people with diabetes?

In just a few short years those of us who witnessed the dramatic growth of this market and then the equally dramatic decline will be sitting around having cocktails discussing what might have been. How this didn’t have to happen. It was great ride but the ride is over time to move on.