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Roche continues to restructure diabetes unit

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Roche Diagnostics Corp.’s diabetes business continues to restructure, even as the company won its third product approval of the year in the United States.

Roche officials said last week that price competition and lower reimbursement rates are driving a change in its research & development units, first launched this summer, which will trim about 100 positions combined from its R&D hubs in Indianapolis and Mannheim, Germany. Also, Roche is continuing to streamline its U.S. field sales staff, a move first announced in January, in an effort that will trim an unspecific number of employees.

Meanwhile the Swiss company, which operates its North American headquarters out of Indianapolis, continues to clear away the regulatory roadblocks that have held back its diabetes business in recent years.

Roche won approval last week from the U.S. Food and Drug Administration for the next generation of its hospital blood glucose meter, called Inform II.

The product had been held up at the FDA for unknown reasons since late 2010. Roche has had a variety of problems with the FDA that have held back its sales in the United States, forcing the company to compete short-handed against products launched with newer technology and features.

Roche’s North America diabetes sales fell 4 percent last year to about $667 million. The company employs about 2,900 people in Indianapolis, about one-third of whom work in the diabetes business. Roche has roughly 1,000 field sales staff around the country that report to the Indianapolis office.

After Roche acquired insulin pump maker Disetronic in 2003, the FDA said the company’s factory in Switzerland wasn’t up to snuff. That kept Roche’s insulin pumps off the market until 2006, and its sales have suffered ever since.

In 2009, Roche was trying to get a new blood glucose monitor approved for diabetics in the United States. But the FDA objected to the meter’s use of an enzyme that, in rare cases, did not distinguish between glucose and another sugar called maltose. When that happened, the monitor could produce a falsely high reading, leading patients to take a dose of insulin that was too large.

In 2011, Roche retooled its plant in Indianapolis that makes the chemistry strips for blood glucose monitors, eliminating the problem with maltose.

That change helped Roche win approval in January for its new blood glucose monitor, called the Accu-Check Nano SmartView.

The change in strip technology also appears to have helped Roche win approval for the Inform II, which the company began selling this month. The delayed approval of the Inform II played a role in the breakdown of a buyout deal Roche struck two years ago with a company that makes software for its products.

“Accuracy and patient safety are the foremost concerns for blood glucose testing in hospitals and other point-of-care settings,” said Roland Diggelmann, chief operating officer at Roche Diagnostics, in a prepared statement.

Diggelmann touted the launch of the Inform II during a conference call with investors on Oct. 16. But he also said growing pricing pressure from competitors is contributing to slower sales in diabetes. Through the first nine months of this year, Roche’s global diabetes sales fell 5 percent.

“We are addressing this and want to secure long-term profitability via restructuring, addressing both ends: the cost structure side as well as the sales and product and innovation side,” Diggelmann said during the conference call. “We are in the process of doing this in the R&D organization, focusing on competent centers both in Indianapolis and Mannheim. We're also optimizing the [marketing] investments with some field force restructurings, which have already started to take place, mainly in the United States, and also streamlining the operation structure.”

The changes in R&D will move all development of blood glucose monitors to Indianapolis over the next ocuple years, while all R&D on insulin pumps will move to Germany, said Roche spokesman Todd Siesky. The changes in the sales force are making all representatives sell both monitors and pumps, rather than having specialized teams for each porduct line.

Roche only discloses North American diabetes sales results every six months. Through the first half of this year, diabetes products, including blood-glucose monitors and insulin pumps, saw their sales fall by 1 percent, to about $296 million.

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  1. liek the rest of America

  2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

  3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

  4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

  5. whoa!

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