The Pump Market - A Market in Turmoil
ADA Highlights

This show is barley two days old and I'm convinced that the insulin pump
market is headed for trouble. Here's why:

1. The Doc's love Lantus. As I've reported before Lantus is the newest long acting insulin from Aventis (NYSE:AVE). The basic problem for pumps is that using Lantus patients can now achieve control with less hassle. No calibration issues, no counting carbs and it cost less.

2. There are several new therapies in the pipeline that look very promising.

3. Although DI doubts inhaled insulin will become a reality, there are other delivery methods that offer alternatives to pumps.

4. For reasons I can't understand more companies are entering the pump market. Quite frankly, there isn't enough business for the current players. All new players will do is drive the cost down and kill margins.

5. It doesn't help any that we're in the midst of a slow economy and pump prices remain high. The bottom line with insulin pumps is that MiniMed was able to get the low hanging fruit on the tree. Medtronic VASTLY over paid when it bought MiniMed and now they're not sure what to do with the company. With the market grow slowing dramatically, MiniMed has pinned its future on the
continuing sales of disposables. But compitition is coming here as well. Perhaps this why MiniMed President Terry Gregg has decided to leave the company. Now the real question is how does Medtronic (NYSE:MDT) justify this BILLION purchase to it's shareholders.

David Kliff
Publisher
Diabetic Investor
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