Specialist
Former VP at Medtronic plc
Agenda
- Recent trends and developments in the insulin delivery space relating to Medtronic’s (NYSE: MDT) diabetes segment
- MiniMed pump recall – ability to regain market positioning and fix device flaws
- Medtronic’s competitive positioning vs key players such as Insulet (NASDAQ: PODD), Tandem (NASDAQ: TNDM) and others
- Diabetes product pipeline and innovation efforts for closed-loop and patch pumps
- Consolidation dynamics, including Dexcom’s (NASDAQ: DXCM) possible merger with Insulet to combine pumps and monitors
- 2022 outlook, growth prospects and strategic assessments
Questions
1.
What major trends and developments have you been following in the broader diabetes treatment space over the past 6-9 months or so that might better inform our discussion today on Medtronic’s diabetes segment?
2.
Abbott Labs and Medtronic presented data at the American Diabetes Association’s 82nd Scientific Sessions on devices that are central to their near-term prospects in the burgeoning diabetes market. Do you have any major thoughts or takeaways on the company’s presentations that might be a harbinger of things to come in the space?
3.
Specialists in previous Forum Interviews [see Insulin Delivery Systems – Medtronic, Becton Dickinson, Insulet, Tandem – Product Analysis & Competitive Landscape – 5 April 2022] noted that Medtronic has had significant issues with the Guardian sensor for the MiniMed CGM [continuous glucose monitoring] device. Could you discuss the major challenges in manufacturing and for patient use, as well as the steps the company has taken to ameliorate these problems?
4.
The Guardian 4 new iteration device is currently pending approval from the FDA. How much ability might the new sensor have to mend reputational and device efficacy issues, and what’s your anticipated timeline to approval?
5.
Do you have any additional colour on the competitive analysis between the Guardian 4 and competing sensors from Dexcom and Abbott? Do you think the new sensors’ quality reaches parity with that of these devices?
6.
What does Medtronic need to do to resolve patient safety issues highlighted in the FDA’s 2021 warning letter to the company? How do you assess its ability to recover reputationally and fix product defects?
7.
What are your thoughts on the prospective success of the MiniMed 780G pump, given your comments on Medtronic’s ability to fix quality issues? To what extent could the lingering pain points impede the performance of the new pump product coming to market?
8.
How do you assess the strength of Medtronic’s sales force in diabetes and ability to gain traction for its pump and monitor products? How does the company’s relative knowledge and execution compare to that of pure players such as Dexcom and Abbott in monitors or Tandem in pumps?
9.
What are the commercial benefits and drawbacks of bundling CGMs and pumps? Are there any pricing advantages vs a potential lack of sales rep expertise from having to know multiple products in the portfolio? What are some of the puts and takes there?
10.
Do you have any thoughts on a potential merger between Dexcom and Insulet that’s been speculated in the news? This would bring another player offering monitors and pumps under one umbrella to the market. How much of a disruptor would a hypothetical Insulet-Dexcom combination be to Medtronic’s position?
11.
What are you monitoring from CMS [Centers for Medicare and Medicaid Services] or the Biden administration regarding payer reimbursement for type 2 diabetes in general? How might the type 2 reimbursement landscape shift over the next 12 months?
12.
What are your general thoughts on NPH [neutral protamine Hagedorn] insulin as a less expensive alternative? What are the benefits and drawbacks around price vs potential patient preference or outcome concerns?
13.
Could you discuss Medtronic’s positioning in international markets? To what extent does some of the stronger performance in Europe and other ex-US geographies offset the company’s domestic headwinds in diabetes?
14.
What’s your assessment of Medtronic’s upper management, including CEO Geoff Martha and Diabetes Head Que Dallara? How do you assess management’s ability to turn around the quality issues in the diabetes segment and ensure a positive business recovery?
15.
Do you think Medtronic’s diabetes segment could become growth-accretive to the company by 2024, and if so, by how much?
16.
Is there anything that we haven’t discussed on Medtronic that might be especially important to highlight?
