Some juicy tidbits

Some juicy tidbits

While today’s call by Sanofi-Aventis (NYSE:SNY) was about as exciting as watching paint dry that doesn’t mean the diabetes world was devoid of news today.  The first juicy little tidbit comes from another company that released earnings this morning Alkermes (NASDAQ:ALKS) who as everyone should know is partnered with Amylin (NASDAQ:AMLN) and Lilly (NYSE:LLY) on Bydureon. During their call today the company noted that Bydureon which is approved in Europe has already achieved sales of $800,000. A number that seems to have been missed when Lilly released earnings although looking back the number was contained in one of the spreadsheets that accompanied the company’s 3rd quarter earnings announcement. To Diabetic Investor this number would seem to confirm what we have believed all along, in that, there is a great deal of interest in the product and physicians aren’t being shy about giving it a try. It will interesting to see how the product builds on these very early sales numbers and could well provide a glimpse into how the drug will perform once it’s approved by the FDA in early 2012.

The next tidbit comes should be filed under the best way to ruin the upcoming holiday season, as Diabetic Investor has learned that Animas, the insulin pump maker owned by Johnson and Johnson (NYSE:JNJ), will soon be announcing major lay-offs. We had been hearing rumors of such a move for some time now and based on additional reports it appears JNJ is finally pulling the trigger. We can’t say we’re shocked by this news as the unit has never meet expectations at JNJ and has been under pressure to boost results. This news would indicate that the company while not throwing in the towel has decided that enough is enough and the time has come to pare back.

Our third tidbit is the continued shock waves being felt in the insulin pump/cgm world given yesterday’s announcement by Dexcom (NASDAQ”DXCM) and their partnership with Roche. News that should be a hot topic later this afternoon when Insulet (NASDAQ:PODD) reports earnings. Listening closely to the call Diabetic Investor senses that Roche will re-enter the insulin pump via yet another acquisition. Dexcom noted during yesterday’s call that Roche was developing a pump that worked with a PDM like device not unlike how the OmniPod system works. It sounded as if this PDM device could actually control a conventional wired pump or a patch pump. Keep in mind that Roche did buy Medingo who has the Solo patch pump system which was designed to compete with the OmniPod.

Given the many companies developing insulin pumps Diabetic Investor suspects that Roche wants to re-enter the market in a big way with a completely new system.  Given how Dexcom described the system yesterday Diabetic Investor immediately thought of privately held CellNovo as the most likely Roche target. Having seen the CellNovo system which has received its CE mark in Europe, there were just too many similarities between what the company has and what was described yesterday.

The last tidbit falls under the category of nothing is out of the realm of possibility in the wacky world of diabetes devices as rumors are flying that Abbott (NYSE:ABT) and Roche will merge their respective diabetes units. Frankly this is not the first time Diabetic Investor has heard this rumor nor are we taking it all that seriously especially given the recent announcement by Abbott that they are splitting into two companies, one device, and one pharma. However as we learned yesterday with the Dexcom/Roche announcement some rumors actually turn out to be true no matter how crazy they may seem at the time. This is after all the wacky world of diabetes devices were anything can and usually does happen.