This really isn’t difficult

This really isn’t difficult

Winston Churchill once stated; “One ought never to turn one’s back on a threatened danger and try to run away from it. If you do that, you will double the danger. But if you meet it promptly and without flinching, you will reduce the danger by half.”

Well it seems as if Pat Sullivan Insulet’s (NASDAQ: PODD) is not a fan of this great statesmen. Rather than deal with the serious allegations being levied against the company he is running, Pat has decided to remain silent. Why baffles Diabetic Investor as he doesn’t have to spill his guts or do something shocking like tell the truth. Nope all Pat should do is the old corporate two step.

Think about this for moment Pat’s silence is like a patient knowing they have cancer but ignoring it. Rather than get into treatment, they stick their head in the sand ignoring a very serious issue. The longer they avoid dealing with the problem the worse it will get. Unfortunately, by the time they do acknowledge they have a problem it will be too late.

As we have been stating we are more than willing to hear Pat’s side of the story. We will, with his permission, record the interview so all the comments made can be reviewed publicly. Additionally, we have no problem with Insulet’s corporate consul being on the call or Deborah R. Gordon, C.P.A.  Vice President, Investor Relations and Corporate Communications also being on the call. Heck Pat can bring along the entire Insulet Board of Directors if he wants. About the only thing, we won’t do is submit our questions in advance.

As Momma Kliff used to say; “Be as nice and accommodating as you can be, but don’t be an idiot either.”

Now think about what Pat could say, think of the corporate double talk that would go something like this-

“David, it’s so nice to speak with you again. All of us here at Insulet respect Diabetic Investor and appreciate the opportunity you have given us to tell our side of the story. First let me assure you that we are taking these allegations seriously. As a pump patient yourself and user of the OmniPod system, you know full well the importance of us producing a quality product. As you have pointed out several times insulin is not just a lifesaving drug but also a lethal drug when delivered improperly.

Now let’s put aside for a moment that allegations are coming from a short seller, which as you have also noted raises a few eyebrows.

Although we stand by our product I have appointed a special committee to investigate. Again, let me make it perfectly clear we stand fully behind the OmniPod and would not tolerate any quality issues. We have a responsibility not just to our stakeholders but the entire OmniPod community. Once this investigation is complete, which should be within a week or so, we will provide a detailed response that will debunk the these baseless allegations. Rest assured Insulet is committed to patient safety.

Allow me at this point, if I may, to apologize for not addressing this issue during the Investor Day and further apologize for releasing the statement you published to a limited amount of entities and individuals. This was a mistake on our part and as CEO I accept full responsibility for this mistake.

Now here is where things get a little dicey. While I would very much like to address the other allegations brought against me and the company, consul has advised that since this situation is ongoing I cannot comment. Believe me once this situation is resolved and the company and I have been cleared of all charges we will comment. But for the time being we must remain silent on this issue.

David, all of us at Insulet appreciate the opportunity to tell our side of the story. And again, rest assured Insulet is committed to patient safety and operating in an ethical, forthright manner.

And one last thing congratulations on the Cubs winning the World Series.”

Listen we know this classic corporate bullshit but it does, at least for the moment, change the narrative. It’s also a lot better than allowing this cancer to fester. We are not out to ambush Insulet, but we and many others would sure like to know just what the heck is going on at the company. Honestly if the company has nothing to hide, if there are no serious quality issues and they are operating in an ethical manner why not get ahead of the story. Why not in a classy, corporate, nice way call the accusers a bunch of beer guzzling lying sacks of horse manure.

Pat the ball as they say is in your court.