How to Succeed in the Diabetes Device Space

  Last month, private equity firm Platinum Equity offered Johnson & Johnson $2.1 billion for J&J's LifeScan Inc. blood glucose monitoring unit. This comes after plans to shutter its Animas insulin pump subsidiary. Although J&J plans to close the doors on its diabetes business, other companies thrive…or at least break even. Success in this competitive space takes flexibility, a commitment to the long game and a deeper commitment to the patients themselves. Unfortunately, diabetes devices have plenty of potential customers. More than 100 million Americans now live with diabetes or prediabetes, and more than six million use insulin. And the diabetes device market overall is growing. One report predicts a 5.3% compound annual growth rate from 2017 to 2022, with numbers expected to hit $26 million or more by 2022. So why did J&J get out? Hear Johnson & Johnson Innovation's Ibraheem Badejo talk about using cross-pollination to drive medtech innovation at the BIOMEDevice Boston Conference on April 18, 2018. Use promo code "MDDI" for 20% off conference registration.   "The insulin pump business may have been a high growth business for [J&J] but less profitable," said Danielle Antalffy, managing director, medical supplies and devices, for healthcare investment firm Leerink. "Insulin pumps have a 50% or 60% profit margin, which is lower than other devices. And they were competing with Medtronic, which is the leader, as well as Tandem and Insulet. There was ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news