Before we get into our weekly warp up been thinking with shelter in place being the order of the land, well most of the land anyway, are Friday’s still a big deal. Back before we were under lockdown everyone looked forward to Friday. Yet now that most of us are working from home, well we always worked from home, and the days tend to blend together Friday has become like every other day which is as a sad as snow in Chicago on April 17th.
But let’s not wallow in the doldrums and curse the coronavirus let’s be of good cheer and look on the bright side of things. That is unless you live here in Chicago which besides having shelter in place it seems as if the her honor the Mayor has also outlawed sunshine for more than two days in a row.
Let us instead turn to Momma Kliff who used to say try and look for the good that comes from bad. That no matter how bad things seem at the moment the sun will shine again. That life will eventually get back to normal or whatever the hell normal will be when this is all over. So with that consider the following;
As we predicted the end is coming for the folks at Senseonics as try as they might to find a buyer no buyers are emerging. Now some will try and blame the coronavirus for forcing the company to cease operations but that would a major mistake. The fact is and yes, we know people hate those pesky facts but as we have said from the start there just isn’t a large market for an implantable CGM. Look for the company to declare bankruptcy sometime in the near future.
Yet it could be worse as you could be working at Medtronic and be forced to watch this once proud company slowly sink into the abyss. The company has abandoned any effort to move beyond intensive insulin management and has become a shell of its former self. The diabetes unit reminds of the governors who either were late to act on the coronavirus or the ones who still are ignoring it. When this is over the demise of this once mighty empire will come down to two things; arrogance combined with hubris.
Speaking of arrogance combined with hubris the folks at Livongo must be feeling pretty good these days. Talk about turning sand into gold. Although the company’s platform has no direct impact on patients with the coronavirus nor does it help patients with diabetes from getting the virus the street seems to believe it does. Amazingly shares are moving upwards and approaching their all-time high hit shortly after the company went public. All we can say is P.T. would be proud.
Sticking with the carnival barker theme the folks at OneDrop aren’t one to miss a good side show. By buying Dexcom wannabe Sano whose technology looks way cool whiz bang yet has a small problem as it doesn’t work the company is positioning itself to either go public or be sold. This proves two things. A little chutzpah goes a long way and yep it’s a hell of a lot easier to steal millions with a good PowerPoint presentation than it is with a gun. It’s safer too.
Turning to companies with real products combined with smart management teams Dexcom and Abbott will both benefit from the crisis. Both companies have entered the hospital arena and yep hospitals are discovering the many benefits of CGM. The coronavirus may have opened the door to this large underpenetrated market, but the fact is now that CGM is in it will stay there. Not like we needed more reasons to like the CGM or believe strongly in what Dexcom and Abbott are doing but as Momma Kliff used to say never turn down money and the hospital market will only increase already increasing revenues.
Ok enough with real companies with real products combined with smart management teams but staying in the CGM market. The OneDrop Sano deal combined with Abbott’s and Dexcom’s entry into the hospital market will only keep the many Dexcom wannabes alive longer than they should be. Senseonics may be on their way out but for these still alive Dexcom wannabes hope lives eternal. Money will continue to flow into the space as investors are firm in their belief that the greater fool theory is alive and well in our wacky world. And they are 100% correct.
Getting back to good coming from bad again a large and well-deserved shout out to all the companies who have stepped up big time during the crisis. Novo Nordisk, Lilly, Insulet, Abbott and Dexcom are just some of the companies who are placing patients before profits providing their products at low or no cost to patients adversely impacted by the crisis. As we said the other day, we know this business is all about money, but it is great to see that these companies are not the money-grubbing bastards so many make them out to be. As Momma Kliff used to say it’s during difficult and unsettling times that people show their true colors so major kudos to these companies.
Well that’s it for this week now onto the weekend. Yes, we know that Saturday and Sunday will be just like every other day, but we will look on the bright side at least there is no snow in the forecast. Enjoy the weekend, be well and stay safe.