Ignorance is bliss – Diabetic Investor

Ignorance is bliss

Momma Kliff used to tell us all the time don’t fight ignorance it’s a losing battle that you cannot win. We thought about Mom a lot yesterday while watching shares of Tandem tack on 12%+ closing at almost $99. All this from their announcement that they have finalized their deal with Abbott to eventually integrate Abbott’s Libre platform into Tandem’s insulin pump platform. Which will be a neat trick since the recently approved Libre2 CANNOT be used with any automated insulin delivery system or one that has low glucose suspend. But what the heck why bother with these pesky details.

Now let’s be clear here we have nothing against this deal, nor do we have anything against interoperability per se, although we do not see it as the answer to every problem in diabetes. Yes interoperability can be a good thing, but the fact is far too many people ignore the issues with all these different devices talking with all the other devices but let’s not digress.

What we find funny, ironic, crazy is how what really is a non-event got such favorable coverage. It’s not like Abbott and Tandem actually launched a system that allows a Tandem pump to work with the Libre or Libre2, that’s real news. No all these companies did was finalize a deal they started in October of last year. We hate to be Captain Obvious here but there are still several significant hurdles to overcome before these two platforms can work together. Not the least of which is getting the Libre2 cleared for use with AID.

Want more wackiness shares of Dexcom, a company that has a real CGM one worthy of the iCGM designation, also went up on the news. Typically whenever Abbott announces anything about Libre shares of Dexcom sell off. A trend which changed when Libre2 was approved. As that Chinese philosopher said we certainly do live in interesting times.

The reality a place where no one is at the moment is that even if the Libre and Tandem platforms worked together right this very moment nothing much would change. Medtronic is basically in a free fall, the Control IQ is the coolest toy in the toy chest and Insulet will soon have their hybrid closed loop system, the Horizon at the FDA. Dexcom and Abbott continue to gobble up CGM patients as the CGM market continues to expand. Dexcom is not deviating from their strategy nor is Abbott.

All this excitement about a system that is still years away and quite frankly may never get here.

Again looking at the facts, something we do but others seem to ignore, for all practical purposes Dexcom has locked up nearly every insulin pump and Tyler system. Yes all the pump and Tyler systems want to work with Abbott as well but that cannot happen until the Libre2 is cleared for AID. Heck Abbott’s own partner Bigfoot isn’t able to work with the Libre2.

Do we think Abbott will eventually get the Libre2 cleared for AID? For sure. Will Libre2 actually become a real iCGM ? Perhaps. Does all this matter in the grand scope of things? Not really. Will Dexcom be hurt by any of this? Nope.

Looking for a rational explanation for all this excitement for what really is a non-event is pointless. Therefore we must venture into the irrational world. To us this excitement is like an NFL team with the first pick in the draft and there just happens to be a quarterback who seems to be a sure-fire winner available. The kid is coming off a great season and has fans salivating at the prospect of the kid leading their team to the promised land. Nearly every scout says he’s a winner with all the tools to become an all time great. Naturally he’s picked number one signs a fat contract and the stage is set.

Only problem is the kid has yet to play an NFL game, and with COVID heaven knows when he will. Is all this hype justified? Well if you are fan of the Cincinnati Bengals you certainly hope so. But it might wise to remember that for every Joe Montana (a third-round pick) and Tom Brady (a sixth-round pick) there is a Brady Quinn or Ryan Leaf.

That’s why this deal got so much pub; everyone is under the impression that an Abbott/Tandem hookup is a surefire winner even though these two cannot really hookup just yet. Everyone sees this combo as the ultimate win-win when in reality this combo may never happen. Everyone believes this combo will be like Montana passing to Rice when it could Mitch Trubisky passing to Riley Ridley. And if anyone knows anything about Ridley please pass it along to us as we’re big Bears fans and have no idea who this kid is.

Anyway let’s not get bogged down in the facts or reality let’s revel in the hype and enjoy the possibility of what might come in the future.

Author: wpadmin

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