Devices & Diagnostics

Roche doubles down on diabetes, even with reimbursement cuts

While the likes of Johnson & Johnson bow out of the diabetes business, Roche, on the other hand, is leveraging digital tools to lower costs, while attempting to reach the largest volume of patients.

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Roche Diabetes Care is partnering with Blink Health to expand its diabetes business in the quest to reach more patients. Blink provides an online portal for people to order supplies and pick them up at their local pharmacy. Under the partnership, Roche’s entire testing supply portfolio will be available on Blink’s website. Insulin supplies are not part of the program.

New York-based Blink provides an online portal for people to order supplies and pick them up at their local pharmacy. Under the partnership, Roche’s entire testing supply portfolio will be available on Blink’s website. Insulin supplies are not part of the program.

“We want to ensure that there are many affordable options for people living with diabetes and allow all patients to have the option to choose dependable, quality products without price being a barrier,” said Brad Moore, head of Diabetes Care North America at Roche, via email.

Diabetes is expensive for both patients and the companies that help supply care. The American Diabetes Association estimates it can cost patients $7,900 a year to manage their condition. Suppliers have faced their own challenges. In 2013, the Centers for Medicare & Medicaid Services lowered diabetes test supply reimbursement, putting many companies in a bind. Earlier this year, Johnson & Johnson announced they were backing away from their consumer diabetes device business.

The J&J news led some to believe that Roche might soon follow suit, and the company has sent mixed messages on diabetes. They indicated a desire to grow the business, laid off 157 people in March and acquired digital health provider mySugr in June. Given the recent Blink partnership, the layoffs may have been a brief retrenchment as they try to find the right formula.

“As a company, we recognize and understand that today’s healthcare system is complicated and sometimes confusing,” Moore said. “It is our goal to respond to this reality and address the needs of our patients with a solution that both simplifies the testing experience and makes it more affordable to everyone no matter their insurance coverage.”

Roche seems to be embracing a high-volume approach to keep the diabetes business profitable. As part of the Blink agreement, the company is providing free Accu-Chek Guide meters and has set up a payment program that offers discounts on test strips. The mySugr acquisition gives Roche entry into the app space, perhaps allowing them to reach even more patients.

“With Roche’s acquisition of mySugr, we want to create the leading open digital ecosystem so that we can reach the largest number of people with diabetes around the world to make a true difference in their lives,” Moore explain.

Leveraging digital tools to lower costs, while attempting to reach the largest volume of patients, may be a good strategy for Roche. However, some of these programs have a limited shelf life. According to the Blink website, the Roche discounts will be available until the end of 2017.

No doubt, there will be more Roche diabetes news as they continue to explore their options.

Photo: gustavofrazao, Getty Images

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