They are a passionate bunch

They are a passionate bunch

For years Diabetic Investor has noted that any idiot can write a blog and many have. The same is true for twitter something we witnessed with all the MannKind (NASDAQ: MNKD) Afrezza zealots. Well it seems that Diabetic Investor long the target of MannKind zealots is now on a new twitter hit list. Yes, this deal between Medtronic (NYSE: MDT) and UnitedHealthCare has gone viral and like the MannKind twitter zealots the people who don’t like this deal are a little short on those pesky facts.

Rather than review the many facts they have wrong let’s look at this from another perspective and once again let’s use a real historical perspective. Think about what would happen if Tandem (NASDAQ: TNDM) went out of business, something we hope does not happen but given their financial situation could happen. Would these people be up in arms? Would this not limit patient choice even more than this deal?

Since many of these folk on twitter have no idea what rotary phones are or have any clue as to how the business of diabetes works here is some free education. Back in the day a company called Deltec had one of the best insulin pumps around, it was called the Cozmo. Patients raved about this pump much as Tandem patients rave today about the t:slim. Initially things looked pretty good for Deltec, which was a unit of Smith’s Medical, so much so that Abbott (NYSE: ABT) was strongly considering buying Deltec.

Only problem was Medtronic sued Deltec over intellectual property. Now as we have noted many times IP lawsuits in this wacky world are not uncommon.  Well as it turned out Medtronic had a very strong case and ultimately Deltec settled. Although the exact terms of the settlement were never to our knowledge made public it was known that Deltec agreed to pay Medtronic a fee/royalty for each Cozmo sold.

Needless to say Abbott lost interest and sadly Deltec was shutdown. Did this adversely impact Cozmo patients, of course it did in the short term. However, all the remaining pump companies offered special programs for Cozmo patients so they could keep on pumping, The Cozmo may have been a great pump but Deltec did not have a financially viable business model after the settlement.

From our perspective it would be a far worse scenario for insulin pumps patients if Tandem went out of business. This would have a greater impact on patients then the Medtronic United deal, a deal which has several loopholes so this yapping about limited patient choice is just plain nonsense.

As we learned from the Cozmo experience even when a product is pulled from the market, life goes on and patients still have options.

The reality here is that these people are clueless when it comes to how things work in the real world. They are a passionate bunch unfortunately this passion is misdirected at Medtronic and United. These companies made a business deal, we have no doubt that Tandem and Animas, a unit of Johnson and Johnson (NYSE: JNJ) were given the opportunity to offer a better deal.  They also have the option of offering programs for their patients who will impacted by this deal. If anyone thinks these companies will just sit around and do nothing, think again.

Another misplaced passion is this belief that somehow a Medtronic pump won’t get the job done.  There is no credible evidence to suggest that patients achieve better outcomes using a non-Medtronic pump. The main difference quite frankly is in the sensor augmented space as the Medtronic sensor isn’t as good as the Dexcom (NASDAQ: DXCM) sensor, even so the deal does not impact patients using a CGM. So it possible that a patient could use a Medtronic pump and a Dexcom CGM, something that is happening right this very moment. Imagine that.

The good news here is these people can hook up with the MannKind Afrezza zealots, an equally uniformed group, and bash away at Diabetic Investor. Our one wish is that these people find more creative ways to call us stupid.

As Momma Kliff was very fond of saying; “The truth sometimes hurt and some people just can’t accept the truth.”