Roche Finally Does Something Right

Roche Finally Does Something Right

Diabetic Investor has learned that Roche has decided to spin off of their troubled diabetes unit into a separate privately held company. According to well-placed sources within the company this announcement has already been made internally and will be made public when the company reports second quarter earnings.

Frankly Diabetic Investor isn’t surprised by this news as the company has been shopping the unit for some time with no luck. Let’s be honest about it given the dismal state of the conventional blood glucose monitoring market even in the wacky world of diabetes there aren’t too many companies dumb enough to spend billions to get into a market which is dying a slow and painful death.

Quite honestly this is actually the smartest thing Roche has done since they invented the comfort curve test strip. By spinning of the unit they will no longer have to keep explaining to stakeholders how they turned gold into sand. How they went from the penthouse to the outhouse in just a few short years.

Although Diabetic Investor has yet to learn of the exact structure of the spin off, this move does give the company several positive options. The reality is as a privately held company the unit can operate in relative obscurity. They won’t have to explain to investors every quarter why sales continue to plummet and how competitive bidding is making their lives miserable.

Yes the fat lady is singing loud and clear for every major conventional BGM company. The question now becomes who’s next to acknowledge what is painfully obvious. That this market will never recover, that the old days of huge profits are gone forever. The swan song has officially begun and it’s not a happy tune.