What’s the motive?

What’s the motive?

Yesterday Diabetic Investor reported that Lilly (NYSE: LLY) had terminated their agreement with Companion Medical. Information we obtained directly from Lilly. Well it seems Lilly is in full blown panic mode vigorously deny that the information obtained by Diabetic Investor claiming that it is incorrect.

Last night at the Dexcom event a Lilly spokeswoman read Diabetic Investor the riot act. This morning we received an email from Greg Kueterman Director of Communications, Lilly Diabetes which stated the following;

“I was alerted that your report about technology advancements in the diabetes space yesterday included a line that said you’ve heard Lilly has ended its relationship with Companion Medical. That is not true. Lilly continues to have a relationship with, and investment in, Companion Medical. I want to make you aware and see if you can correct the information. Many thanks…”

It should be noted that the Lilly spokeswoman last night did not deny that in addition to this relationship with Companion, the company also has an internal “smart” insulin pen project underway. And one could argue that these vigorous denials are just a smoke screen.

So the question now becomes why did Lilly share this information with Diabetic Investor, what was the motive. The second question is why the hissy fit.

As we noted yesterday everyone in the insulin space and we do mean everyone is developing a “smart” insulin pen. This is not news. Sanofi (NYSE: SNY) has made an investment in the Gocap “smart” pen while Novo Nordisk also has “smart” pen projects underway. Yet these “smart” pen projects aren’t limited to just insulin companies as Medtronic (NYSE: MDT) and Johnson and Johnson (NYSE: JNJ) are also working on this.

No disrespect to Lilly or Companion but “smart” pens are quickly becoming a commodity and are just a piece of hardware that is part of the diabetes management echo system. Like almost every other diabetes device all these “smart” pens do basically the same thing the same way. Each is cloud enabled sending information to an app.

Now we have no idea why Lilly shared this information with Diabetic Investor but the fact remains they did. Should this information prove to be incorrect we will apologize in advance however what happens if it is true and Lilly does end up going with their internal project, will Lilly apologize to Diabetic Investor?

Listen Diabetic Investor is used to this and unlike LeBron James we understand that trash talk is part of the game.  To us this is just another example of how some companies just don’t get it. Time to get a grip folks and start focusing on what really matters, what should always matter – the patient.