You gotta love this wacky world

You gotta love this wacky world

Well it seems as though this rumor regarding the status of the Asante IPO is true. Again according to multiple sources the IPO wasn’t getting that great of a reception from potential investors as they believed the anticipated pricing for the IPO, somewhere around $14 per share, was just too pricey. It seems potential investors were more comfortable with a price of $5 or $6 per share which obviously is well below what the company wanted.

So what happens now, well either the company proceeds with the IPO at a lower price, therefore raising less capital then anticipated or they go back, again, and do another private round.

Honestly Diabetic Investor isn’t surprised by any of this nor should any of our loyal readers be, as we have noted on many occasions just how tough the insulin pump market has become. Perhaps this is a turning point as maybe just maybe investors have awakened to the fact that building a better mouse trap just isn’t going to get the job done. Perhaps they have learned from the recent troubles at Insulet (NASDAQ:PODD) that the insulin pump market isn’t all kibbles and bits. Perhaps they are tired of listening to investment bankers and analysts who really know nothing about the insulin pump market pumping (and no excuse for the play on words here) these companies when all they really want is a fat fee.

Do we add Asante to the list of those who have tried but failed? Is Asante, Deltec reincarnated? Could it be that what we’ve been saying for years is really true, is it possible that the insulin pump market is not large enough nor growing fast enough to support not just the existing players but the many who want to enter this market? Is it possible that investors realized that when a company as well capitalized as Johnson and Johnson (NYSE:JNJ) can’t make money in the insulin pump market even when they own almost 20% of the market there just might be a problem?

So what is Asante saying about all this … well so far nothing, nada just radio silence. Granted we know that it’s tough whenever a company is based in beautiful and sunny California as it’s important to get the surfing in while the surf is up. Yet one just might think that after emails and phone calls someone at Asante just might get back to Diabetic Investor. Yes we know we’re not the sharpest knife in the drawer and according to the folks at Asante we can’t read an S-1, but given our track record we don’t think it’s an understatement to say that we know the wacky world of diabetes pretty well.

We’d love to hear your side Asante.