No surprise here

No surprise here

Yesterday Insulet (NASDAQ: PODD) announced they had sold the Neighborhood Diabetes supply business to Liberty Medical, LLC for $5 million in cash. This brings to an end a chapter in the Insulet story that they would like to forget given that they paid $63 million to buy Neighborhood back in June of 2011. According to a company issued press release Insulet CEO Pat Sullivan stated; “This transaction is an important step in positioning Insulet as a more focused organization, enabling us to direct our operational and financial resources toward driving continued growth of our innovative OmniPod and Drug Delivery products while improving our financial profile for profitable growth over the long term. We continue to execute on our strategy to generate long-term, higher-margin revenue growth and deliver increasing shareholder value with our truly differentiated product offerings.”

The fact is Neighborhood was nothing but a distraction for Insulet and quite frankly was only purchased to distract investors from how poorly the OmniPod was doing back then. Pat should be commended for recognizing this and having the stones to get out of what was a bad business. The $5 million might not be much but it’s better than the alternative.

The question now becomes is this it or are even more changes coming. Since taking over Pat has basically cleaned house, acknowledged the problems/issues he inherited and instituted a new direction for the company. Although we have questioned and continue to question many of his decisions no one can state that he doesn’t have a plan. That unlike so many others in this space he is not simply wondering in the wilderness without a map.

Time will tell whether he can transform Insulet from being an insulin delivery company to a drug delivery platform. This is where Pat wants to be and to his credit he’s taking the steps necessary to get there.

Also in the no surprise department Senseonics announced they have signed an agreement to collaborate with Diasend for an integrated continuous glucose management solution. According to a company issued press release:

“Senseonics Holdings, Inc. (OTCBB: SENH), a medical technology company focused on the development and commercialization of a long-term, implantable continuous glucose monitoring (CGM) system for people with diabetes, today announced that it has signed a collaboration agreement with Diasend that will allow clinical review of patients’ CGM data from the Eversense® Continuous Glucose Monitoring (CGM) System using the diasend® Clinic and diasend® Personal solutions. Under this agreement, the two companies will work together to enable clinicians and patients to utilize the diasend®solution to review past Eversense CGM data along with insulin pump and activity tracker data.”

Senseonics just becomes the latest company to dive into the interconnected diabetes management (IDM) space, since they don’t even have an approved product yet it remains to be seen if this collaboration is nothing more than a publicity stunt. To Diabetic Investor this is one big yawn.

Adding to the no surprise department is the news that our wine drinking friends in France will actually be laying off employees in – shock ray blu – France. Yes, according to several reports Sanofi (NYSE: SNY) will lay off …wait for it .. 600 French employees .. wait for it …over a three-year period. Now this may not seem like a significant step but given the French Unions and the power they hold it is somewhat shocking. Perhaps not as shocking as serving white wine warm or red wine chilled but shocking nonetheless.

In typical Sanofi fashion these really aren’t layoffs at all as according to a statement from the company the “layoffs” will come mostly from early retirements. So what seems like shocking news is really Sanofi doing the same old same old. Yes, cuts are coming and yes they will be dramatic but these beheadings will not occur on French soil rather right here in the good old USA. Nice to know that Olivier and our good buddy Serge are getting along so well and continuing on that Sanofi tradition of never been held accountable.

One last thing which we don’t know whether it will be surprising or not as it hasn’t happened yet. But later today after the market closes MannKind (NASDAQ: MNKD) will be conducting an investor update. Now if form follows function this call will be filled with hope and hype and very little substance. If this call follows past calls there will be lots of talk about possible partners, new usages for the technology, how the financial issues really aren’t as bad as they truly are and how in spite of all evidence to the contrary Afrezza is alive and doing great.

Yes, there will be questions about the possibility of a buyout, that there is some company stupid enough to buy MannKind. There will be questions about their newest partner, a partner that no one knows anything about, that appears to have been in business for about 15 minutes and who put up no upfront cash whatsoever. And of course it wouldn’t be a MannKind call if they did not insinuate, pontificate but say absolutely nothing of substance.

So stay tuned as this may or may not be a fun end to the day.