BD is getting out of market for glucose monitoring

Chain Drug Review, Oct 23, 2006

FRANKLIN LAKES, N.J. -- BD is bowing out of the multibillion dollar international blood glucose monitoring market. The company stresses its other diabetes products--insulin syringes, pen needles and lancets--will not be affected by the decision regarding the monitors.

"We evaluate all of our businesses on an ongoing basis, and this decision was made after careful consideration of our prospects and our ability to create and deliver value in the market," explains Edward Ludwig, BD's chairman, president and chief executive officer.

"We made a difficult but necessary business decision to exit the blood glucose monitoring market."

BD entered the sector in early 2003 with the debut of the BD Logic blood glucose monitor. The company says its test strips will be distributed until December 2007.

A pretax charge in the fourth quarter of about $50 million to $70 million is estimated by BD, which developed the first syringe dedicated to insulin delivery in 1924. The company says revenue derived from its insulin delivery products exceeds $500 million annually.

BD says blood glucose monitors will represent approximately $105 million in fiscal 2006 earnings--excluding an estimated $10 million associated with lancet products.

Separately, Abbott Diabetes Care, Bayer Diabetes CareLifeScan Inc. and Roche Diagnostics say they will provide free blood glucose monitoring systems to BD Logic patients.

Abbott says its FreeStyle line is similar to BD Logic in that both systems use a minimal blood sample size. Bayer says BD Logic users are eligible for its Contour meter as well as a free starter supply of test strips, coupons and access to a Bayer support line.

LifeScan a unit of Johnson & Johnson, is offering a OneTouch blood glucose monitor (including a starter supply of test strips) at no charge to any diabetes patient who has been using the BD system.

Roche is providing a toll-free number from which users can receive a starter kit which includes a coupon for a free Accu-Chek blood glucose system which is redeemable at a retailer of the user's choice.