This is going to get interesting
In a few weeks the diabetes world will gather in Beantown for the American Diabetes Association Annual Scientific Sessions. Yes the annual conclave brings together all facets of this wacky world. While always an interesting event Diabetic Investor sees this year’s get together being particularly wacky. The fact is this wacky world is in the midst of a major transformation as we move ever closer to outcomes based reimbursement.
Adding some additional craziness is the continued march toward commodization. Now as we all know the glucose monitoring market has already transformed into a full blown commodity market. The insulin pump and drug market is headed that way. No matter which market one looks at one overriding fact is clear price now trumps performance. The biggest question on our mind is will a full blown price war develop in the drug market. In their zest to capture share will these companies capitulate to the demands of payors who now have the upper hand when it comes to determine the winners and losers.
Not like this wacky world needed a monkey wrench thrown into the mix but another very compelling story will be how the coming of interconnected diabetes management (IDM) will play into all this. Now many see this as just a device story and to a certain extent that is correct. However it would be a major mistake to ignore the impact of IDM on the diabetes drug market. As we have noted in the past therapy compliance is a huge issue and any company that can solve this paradox will reap untold riches.
Besides these issues the ADA is also full of interesting subplots, yes like a good novel this show has always produced some juicy side stories. This year we see Afrezza and Toujeo leading the way. Now Diabetic Investor has not heard from our wine drinking friends in France but we suspect whoever attends, and we are really hoping Serge is coming, it will interesting to see how they attempt to spin the lackluster results for Afrezza and slow uptake for Toujeo. We are honestly hoping a strong MannKind (NASDAQ:MNKD) contingent shows up as this would set twitter a blaze.
By the way did we mention that analysts continue to downgrade shares of MannKind, just saying and yes we are enjoying every minute of this.
As usual Diabetic Investor will be running full tilt at the show and doing our best to report on every tidbit. Perhaps Bayer will use the show to finally announce that Panasonic/KKR has bought their diabetes division. Now that shares of Insulet (NASDAQ:PODD) have fallen over 40% this year maybe they will finally achieve at long last their goal and get acquired. Perhaps the most intriguing question is which company will come out of nowhere and become the talk of the show. Yes it seems to happen almost each and every year and we’re sure this year won’t be any different.
Whatever transpires Diabetic Investor will be there to report, hold court and down a few. This is going to be interesting.