Advanced Diabetes Sees Complement In US MED

Theresa Flaherty, Managing Editor

Updated 10:54 AM CDT, Fri August 20, 2021

CARLSBAD, Calif. – Advanced Diabetes Supply increases its visibility in the eastern U.S. and gains a large platform on which to grow with its recent acquisition of US Medical Supply (US MED).

“Both companies have a good brand, and they really complement each other,” said Tim Cady, president of ADS. “Our immediate plan, short term, is to keep both brands out there.”

ADS’s focus on insulin pumps and continuous glucose monitors – a shift forced by the advent of national mail-order contracts for diabetes testing supplies in 2013 – makes it well positioned for growth in a market that has exploded the past few years.

In addition to the Doral, Fla.-based US MED’s “vast book of business” – it has contracts with more than 500 insurance plans covering nearly 200 million lives – the company also has a strong digital platform, says Cady.

“They’ve really embraced the Internet and the digital marketing aspect of bringing on patients,” he said. “They’ve built out an internal digital marketing platform and are very active online. No one we compete with has that level of experience, including ourselves.”

Also attractive: US MED’s direct-to-consumer model, including TV advertising, that complements ADS’s more traditional model of working with physicians and diabetes educators, says Cady.

“(These are all) good things for the company,” he said.

US MED is ADS’s first major deal since it was acquired by Court Square Capitol Partners in late 2020.

“Most of what we’ve done over the years is grow organically, not through acquisitions,” he said. “Court Square has been in the DME space and understands Medicare reimbursement, and they’d been looking at diabetes.”