Why not have some fun?

Why not have some fun?

This morning it was Abbott’s (NYSE:ABT) turn to announce lousy results for their diabetes care unit and blame these poor results on competitive bidding, pricing pressure, blah, blah, blah. Although Diabetic Investor did find it amusing that the company made a point to mention that their FreeStyle InsuLinx® meter was selected by the government of Saudi Arabia as the exclusive meter for the country’s National Diabetes Awareness Program.  Doing a little research Diabetic Investor was surprised to learn that nearly 17% of the Saudi population has diabetes which amounts to approximately 2 million plus patients.  Now we don’t want to make a light of this “accomplishment” but when a company highlights an item such as this it shows that things are not bad, they are horrendous.

This news also prompted Diabetic Investor to offer some advice to Roche and Bayer when they report their lousy results, why not have some fun instead of the same old corporate speak. Wouldn’t it be refreshing if instead of telling everyone what they already know; that the BGM market is about as pleasant as a visit to the dentist for root canal work, that these companies gave another version of events.

Since none of the BGM companies know anything but corporate speak allow us to help out. Rather than talk about competitive bidding and the like why not try something like this….

“As everyone knows market conditions for BGM absolutely suck and sorry to say things will get worse in the future and there is virtually no hope that market conditions will improve – ever.  Now investors just might wonder why if conditions are so bad why we don’t exit the business and sell this dog of a unit to someone else. We’ll believe us when we tell you we have tried but we can’t find any company dumb enough to spend billions to make millions.

Now for those investors who believe that we should have excited this business years ago all we can say is your right. There is no mistake about it we screwed up and we screwed up big time. Although it may provide little comfort today we must admit that we didn’t hear any complaints from our investors when this market was growing at double digit rates and we were making boatloads of cash. Heck back in the day BGM was license to print money and when times were good we printed a ton of it.

So for the time being investors will need to bear with us as we milk the last remaining profits out of this unit. Yes truth be told that even at lower prices we still do make a profit just not the obscene profits that we made in the past. Listen we’ve cut costs to the bone, we’re not investing any money in the unit and believe it or not we still have lots of people using the products we make. So look at the bright side folks as bad as we have managed this unit we’re still making some money. This is what makes the wacky world of diabetes so great it’s perhaps the only business where companies can really screw things up and still make money.

Now onto our …..”