Grab Bag

Grab Bag

Besides Lilly (NYSE: LLY) reporting earnings this morning there was a grab bag of other wacky news. So, let’s get to it-

First and we just love this one Johnson and Johnson (NYSE: JNJ) sent out an email today which stated;

“As diabetes prevalence continues to rise, two recent studies in the Journal of Diabetes Science and Technology show that blood-based self-monitoring methods, such as the OneTouch Verio Flex® blood glucose monitoring system, remain the most accurate and cost effective[1] way to monitor blood glucose levels – as newer technology comes up short on both points. “

Now we’ll be honest we didn’t bother to read either study as SMBG is dying a slow and painful death. Now that the Libre has joined the CGM world it is no longer a question of if CGM will replace BGM but when. Keep in mind that Dexcom (NASDAQ: DXCM) and Google are working on a very cost-effective patient friendly CGM as well. CGM is getting not just more accurate by the day but also cheaper. Bottom line SMBG doesn’t stand a chance.

The reality is JNJ has seriously lost their way and just can’t get out of their own way. Unable to sell Animas they decided to shut it down. Well it seems they are following the same path with LifeScan a franchise which gets less and less valuable with each passing day. The harsh reality is if the company doesn’t stop shooting themselves in the foot they could be forced to shut down LifeScan too. Which just proves an old Irish saying that there is no right way to do the wrong thing.

In other Bigfoot in announced a deal with Ypsomed. Per a press release;

“Bigfoot Biomedical and Ypsomed (SWX:YPSN) today announced that the companies have entered into an agreement under which Ypsomed will supply Bigfoot with a customized proprietary version of its Orbit® infusion sets as part of Bigfoot’s investigational automated insulin pump-based solution for use in a pivotal trial.”

Perhaps Bigfoot has learned from the mistakes made by their insulin pump friends at Tandem (NASDAQ: TNDM). One of Tandem’s bigger problems, and they have many, is they don’t make money on the sale of pump supplies. Now the financial terms of this deal were not disclosed but we suspect Bigfoot is looking down the road and does not want to repeat the same mistake.

Insulin pump supplies are a cash cow for market leader Medtronic (NYSE: MDT) and should be for any conventional wired system.

Staying in sunny California yesterday our friends at MannKind (NASDAQ: MNKD) did what they do best, restructured debt. Per a company issued press release;

“MannKind Corporation (NASDAQ:MNKD) (TASE:MNKD) today announced the restructuring of certain of its outstanding debt obligations.

• Exchanged senior convertible notes in the amount of approximately $27.7 million due August 2018 for senior convertible notes in the amount of approximately $23.7 million due October 2021 and 973,236 shares of common stock.

• Extended the maturity of $10 million of the Deerfield facility from October 31, 2017 to January 15, 2018 and allowed for such principal to be converted into common stock.

• Allowed for certain additional outstanding principal under the Deerfield facility to be converted into common stock.

MannKind’s Chief Executive Officer, Michael Castagna, commented, “These transactions, in combination with the recent registered direct offering, are expected to enable us to execute our near-term business plan.”
And yep the stock which has been on crazy roller coaster ride fell yesterday and is down again today. Listen we have no idea what the future holds for these guys but we do admire their tenacity.

Well the day is young so stay tuned as you never what’s going to happen next in our wacky world.