Tick tock

Tick tock

This morning Johnson and Johnson (NYSE: JNJ) issued a press release which stated;

“the OneTouch Vibe™ Plus Insulin Pump and Continuous Glucose Monitoring (CGM) System has received U.S. Food and Drug Administration (FDA) approval and Health Canada’s authorization sale for the treatment of patients age two and older living with diabetes. The OneTouch Vibe™ Plus is the first and only insulin pump integrated with Dexcom G5® Mobile CGM technology – combining accurate and precise insulin dosing technology from Animas with the most accurate CGM sensing technology from Dexcom.  This system will enable patients to see their glucose reading at all times either on their pump or on using the Dexcom G5® App on their smart phone, and to deliver the precise amounts of insulin they may need from the pump.”

Well we suppose this news is worthy of a press release but what caught our attention was something else in the release;

“As you may have noticed, this new product carries the OneTouch® name, as will all Animas insulin delivery products and services moving forward. This is an exciting change that signals our continued commitment to advancing technology in the insulin delivery space now and in the future. As you already know, OneTouch® is a strong, trusted brand known in the type 2 diabetes space that consistently delivers innovative diabetes solutions. By integrating the Animas portfolio into the OneTouch® family, we can offer more comprehensive diabetes management solutions to help all patients with diabetes – both type 1 and type 2 – to manage the complexities of glucose control and stay in range.”

So, let’s see if we’ve got this right JNJ bought Animas back in December of 2005 for $518 million and 11 years later they are fully integrating the company into the OneTouch family. That this name change will do anything to change the dynamics of the insulin pump market. Someone needs to explain to us how this will change will result in “more comprehensive diabetes management solutions to help all patients with diabetes – both type 1 and type 2”.

Listen we don’t want to dump on our many friends at JNJ, heck they have enough problems to deal with. But seriously shouldn’t this change have taken place say 11 years ago. What JNJ wasn’t offering “more comprehensive diabetes management solutions to help all patients with diabetes – both type 1 and type 2” back then.

Listen if JNJ really wants to do this why not buy Tandem (NASDAQ: TNDM) or better still Dexcom (NASDAQ: DXCM) or even better buy both. Do not these companies help them with their much-hyped diabetes eco-system? Is it not true that if they let Tandem implode that Medtronic (NYSE: MDT) will pick up the lion’s share of patients, patients which Animas desperately needs. Is it not true that the Dexcom system is mission critical to their future success and if they aren’t careful Dexcom could land in someone elses hands? Someone who could end up competing with JNJ in the insulin pump space.

Diabetic Investor suspects that JNJ is caught in that vortex between the way things used to be and the way things are going to be. That the folks in charge of their various diabetes franchises understand this but are handcuffed as the folks above them are stubbornly holding onto the past. We have said it before for JNJ it’s either go big or go home, there is no third option. The question is how long will upper management let these franchises twist in the wind.

The clock is ticking and time is not on their side.