We give up

We give up

As Diabetic Investor prepares for the J P Morgan Healthcare Conference we ran across this piece of news from our friends at MassDevice;

“Intuity Medical said today that it added another $15 million to the $40 million Series C round it reported late last year, bringing the round’s total to $55 million.

Sunnyvale, Calif.-based Intuity said KCK Group joined round leaders PTV Healthcare Capital and affiliates of Luther King Capital Management as new investors; existing backers Accuitive Medical Ventures, Investor Growth Capital, U.S. Venture Partners, Venrock and Versant Ventures also participated.”

Just in case anyone has forgotten Intuity is the maker of the Pogo, an all in one conventional glucose monitor. Let’s also not forget that before raising this $55 million the company had already blown through $200 million. Nor should we forget that the Pogo while FDA approved has no sales, no sales organization and happens to operate in a dying market. Other than that, things are just peachy.

Now we could simply chalk this up as another example of how there is no cure for stupid. That the firms who invested are still recovering from one hell of a New Year’s Eve party and just aren’t thinking straight. Seriously Diabetic Investor is trying to make sense of all this and just can’t. There is no logical reason that these investors are throwing good money into a very bad market.

Looking for an explanation, any explanation we remembered something Momma Kliff told us long ago; “Don’t try an explain an irrational act with a rational explanation.”

Listen we have seen our share of very stupid investments after all this is the wacky world of diabetes where anything can and usually does happen even when it makes no sense whatsoever. But this one is truly dumbfounding. The only way these investors make any money here is if someone dumber than they are comes along and buys the company. And about the only company dumb enough to make such a buy is downsizing their diabetes franchise.

The real question is why anyone would invest anything in any conventional monitoring company, even the way cool whiz bang cloud enabled companies. Is it really necessary to go over the reasons this market is circling the bowl? What do these people have to be hit over the head with a baseball bat to get it?

The only explanation we can come up with other than utter stupidity, is these investors are looking for a tax write-off, that they have made money with their other investments and need to generate a loss. There is no other logical reasonable common sense explanation.

Although it was not one of our New Year’s resolutions we ae adding one to the list. Never ever try and understand something that is completely irrational and plain stupid.