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Smiths Medical Announces Intent to Stop Selling Deltec Cozmo(R) Insulin Pumps

Discussion in 'General Discussion' started by Ellen, Mar 25, 2009.

  1. Melissata

    Melissata Approved members

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    No, the warranties are 4 years.

    Has anyone here heard anything about Omnipod and Navigator? A couple of people on the ADA board have been saying that Insulet is working with both Dexcom and Navigator. Doesn't make sense to me and I noticed that no one over here seems to know anything about that. We have two years left also, so I am trying not to be too concerned. It was actually nice to see all of your responses here becaucse misery does love company. I did suspect something was up when I kept getting told that we were at the top of the list for a replacement due to the "urgent medical device recall". Finally last week I was told that they are going to take from 6 months to a year to get them all out. Some kind of urgency that is!
     
  2. Ellen

    Ellen Senior Member

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    Smiths Medical discontinues insulin pump, lays off workers

    Smiths Medical discontinues insulin pump, lays off workers

    Smiths Medical on Wednesday said it has stopped selling its Deltec Cozmo insulin pump and is laying off 51 workers, including about a dozen at its Arden Hills headquarters.

    Company spokesman Bob Hanvik said the pump had been losing market share amid increased competition from Fridley-based Medtronic Inc. and New Brunswick, N.J.-based Johnson & Johnson Inc.

    There also has been a trend to package insulin pumps with a diabetes care package. To compete, Smiths would have had to invest a large amount of resources to create its own package of diabetes products and services.

    The pumps come with four-year warranties. So even though Smiths will no longer sell them, it will still have a part of the business devoted to them.

    Smiths is a specialty medical-device maker that is part of London-based Smiths Group. It has about 8,200 workers around the world, including about 600 around the Twin Cities, mostly in Arden Hills.


    cnewmarker@bizjournals.com | (612) 288-2107

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    Smiths to exit diabetes business; job loss seen in Arden Hills
    By Christopher Snowbeck
    csnowbeck@pioneerpress.com
    Updated: 03/25/2009 12:20:57 PM CDT

    Smiths Medical — an Arden Hills-based division of the British conglomerate Smiths Group — said today that it is getting out of the diabetes business, surrendering the market to bigger competitors including Medtronic.

    The manufacturer, which employs more than 600 people locally, said it will stop selling the Deltec Cozmo insulin pump, which is assembled in Arden Hills, but will continue to support patients who currently are using the pumps for the life of a device's four-year warranty period.

    Thirteen local workers will lose their jobs as a result of today's announcement, said company spokesman Bob Hanvik. Another 98 local workers in the diabetes unit will continue providing customer support to insulin pump patients, Hanvik said.

    In 2008, Smiths Medical reported insulin pump revenue of $36 million, and an operating profit from that business of just under $6 million. The diabetes unit at Fridley-based Medtronic, by contrast, reported $727 million in insulin pump sales during a nine-month period between April 2008 and January 2009.

    "Smiths Medical's shrinking market share has been exacerbated by the aggressive pursuit of market share growth by two large and well-resourced players — Medtronic, which has the largest share of the U.S. insulin pump therapy market, and JJ," the company said in a released statement, making reference to the New Jersey-based medical products giant Johnson & Johnson.

    Selling insulin pumps increasingly involveexpensive direct-to-consumer marketing efforts, Hanvik said, as well as the ability to bundle insulin pumps with other products for diabetic patients including continuous glucose monitors.
    Smiths doesn't make a continuous glucose monitor, and a marketing partnership with another company that sells such a product — Illinois-based Abbott Laboratories — didn't provide a way forward, Hanvik said. Medtronic, by contrast, has reported dramatic growth in its continuous glucose monitor business, with revenue during the company's most recent quarter reaching $34 million — 60 percent more than during the same quarter the previous year.

    What's more, Smiths said it doesn't have other products that are sold directly to consumers, so the diabetes business had "little synergy" with the rest of the company's operations. Smiths Medical supplies devices such as medication delivery systems used by hospitals, home care companies and other health care providers.

    There isn't a set timeline for winding down the remainder of the company's diabetes business, Hanvik said. The timing will depend on continued demand not only for servicing insulin pumps under warranty, but also for certain "disposable" products that Smiths makes and can be used with insulin pumps from other manufacturers.

    Christopher Snowbeck can be reached at 651-228-5479.
     
    Last edited: Mar 25, 2009
  3. Ellen

    Ellen Senior Member

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    Minnesota?s Smiths Medical exits diabetes market, broader review underway
    March 25, 2009 by Chris Seper

    Filed under Innovation, Top Story Leave a Comment

    Smiths Medical will stop selling its insulin pump and exit the diabetes market due to troubles with its parent company and changes in the diabetes market in the past three years - the first of what could be several changes at the St. Paul, Minn., medical device business.

    Smiths stated in a release that the diabetes market has ?little synergy with the rest of Smiths Medical?s businesses.? The Deltec Cozmo insulin pump was the company?s only direct-to-consumer product and required a separate sales force and staff.

    ?Without a strong, profitable diabetes business in the United States, the world?s largest medical market, it would also be impossible to sustain the business internationally,? the release stated.

    It will likely take four years for the company to completely exit the diabetes market because of warranty obligations on the device, company spokesman Bob Hanvik said.

    Fifty-one people throughout the United States - mostly in sales - will lose their jobs as a result of the change. Smiths Medical employs 8,200 globally and 3,200 in the United States, Hanvik said. Its dozen brands including Portex, Medex and Jelco.

    The announcement came on the same day that Smiths Medical?s parent company, the U.K.-based Smiths Group, announced falling profits that it blamed on the global economic slump. Smiths Group also stated it has started a total profitabily review of the Smiths Medical portfolio. Leaving the diabetes market was an early decision in that process, the company stated.
    Three major changes in the diabetes market also triggered the exit, according to Smiths Medical:

    The market has evolved from a hardware-plus-disposables model to an integrated diabetes management model, which would have required significant continued investments to keep pace.

    The company?s shrinking market share has been exacerbated by the ?aggressive pursuit? in the market by Medtronic and Johnson & Johnson.
    Next-generation diabetes products would be costly and risk patent disputes because of the amount of intellectual property already around diabetes care.
    The Web site DeltecCozmoUpdate.com will answer patient questions. Smiths Medical said it will meet all warranty obligations of its current users
     
  4. Sarah Maddie's Mom

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    I also dropped them a note just to express how much we benefited from their pump and how sorry we are that they made this decision.

    Also, I spoke with our CDE and she said the Cozmo rep was blindsided, said he learned of the decision today and will be out of a job tomorrow:(
     
  5. BozziesMom

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    That's kind of not cool. One day notice? Bad form.
     
  6. Stacey Nagel

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    I spoke with our rep today at 4pm... she found out via email at 3am that her job was terminated . And, her cell phone will be terminated tomorrow... Geeez...... they couldnt let her use the phone for a while??
     
  7. lil'Man'sMom

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    I worked (pre-Manning) for Smiths for over ten years, mostly with their spinal and epidural lines and custom trachs. Although my experience was positive (I played the game), they are a huge company who is forever changing, not always for the better of their employees or customers.

    Their facility, here, just had a lay-off a few weeks back. A very competent woman in my old office was let go, she had worked for the company for almost 20 years, was closer to retirement then others in the same office. Her Mother had died the day before, her direct supervisor begged the head office to not fire her the day after her Mom died, they didn't listen and she was let go.

    I am so glad I don't have to play the game anymore.
     
  8. Denise

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    ouch ouch ouch
     
  9. CButler

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    You guys must be very upset.
    We don't pump, but I would be upset if we were in this situation.
    Sorry.:(
     
  10. ecs1516

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    I've posted many things I like about Cozmo, hear is what they did not do well.

    I guess we have mentioned things we liked about Cozmo/Smiths. I want to give one thing I did not like besides the bad marketing.
    The customer support was not up to par with Minimed in my opinion. We have Minimed before Cozmo. If you called Minimed day or night you got customer service on the phone at THEIR office. If I called during the day to Cozmo I would get the customer servivce in their office. At night, you would get an on call person at home. One time I called after hours and I could hear kids screaming in the background and the rep was grumpy. No wonder. Another time I called after hours late. The rep sounded like I just woke them up! They sounded ticked I called. It is their job they shouldn't be sleeping!
    She didn't even bother to help me to figure out the problem she just she said would send another pump when she got in the office in the morning. Very unprofessional system they had there.
     
  11. BrendaK

    BrendaK Neonatal Diabetes Registry

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    Carol when does your warranty expire for your kids? I almost feel a little lucky we got a new one just a month ago because we'll have 4 more years at least with it. Your signature looks like yours will expire soon :(
     
  12. ecs1516

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    No, we bought Cozmo again last May 2008. This was our second set. So, if our insurance stays the same they allow new pumps ever three years. So, I would try to get ones in 2011 , I guess.
     
  13. frizzyrazzy

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    I agree with the customer service. I've also had the on call reps at home with the kids screaming. Each time I called and talked to someone in clinical support, I knew more about the pump than they did. I was asking advanced questions and they had no clue what I was talking about.
     
  14. ecs1516

    ecs1516 Approved members

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    The company just was not managed right. It could have been a great pump company.
     
  15. frizzyrazzy

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    and just as I shred CS at cozmo, they replied to my email from yesterday. lol And it wasn't even a canned reply - it was a specific personalized reply addressing things I mentioned in my letter. I thought that was nice of them. :)
     
  16. ecs1516

    ecs1516 Approved members

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    My friend just called Cozmo to get her Cozmonitor replaced. They said no problem. She also asked can she still order supplies through them. They said yes. I thought they were stopping the supplies thru them? Maybe not. They told her business as usually they will support them. But, I thought their letter sais to get your supplies elsewhere. Maybe it is until they run out of their supply.
    She also has the automatic 3 month delivery of supplies and they told her she would still get them?:confused:

    The Cozmo person said she hoped someone would buy them they would hate to lose a good product like Cozmo.
     
  17. ecs1516

    ecs1516 Approved members

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    Was your email about the announcement yesterday?
     
  18. frizzyrazzy

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    It was, after Ellen mentioned it, I wrote an email just saying how much we loved our cozmo and how much, even though we knew it was a business decision, we were still saddened. I just said how much the cozmo meant to us, and to Ian and what it felt like knowing that in 2 years we'd have to find something else, something that would always be our 2nd choice. I wasn't mad at them, just told them how we as their customers felt about the decision. How there was a little boy, attached (literaly and figuratively) to their pump. The email I received back was very nice.
     
  19. KatieJane'smom

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    This sentence is very touching! I love how you phrased that - I'm sure it got your point across very eloquently
     
  20. Twinklet

    Twinklet Approved members

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    UGH! Just heard that the Cozmore Reps were all called to Chicago yesterday and then given pink slips. No warning. I am so angry for them! I know it all boils down to money, but it's difficult to separate the emotions from this.
     

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