Roche Diagnostics ($RHHBY) has been struggling with its diabetes business this year, but the company's blood glucose meters scored the highest in J.D. Power and Associates' user survey.
Roche beat out offerings from Abbott Laboratories ($ABT) and Bayer, among others, and topped the industry average in J.D. Power's study, as users favored its performance, ease of use and design. Roche scored the highest in the performance category, meaning users have a high level of confidence in the reliability of the company's devices, according to J.D. Power.
While Roche Diagnostics is likely proud of those results, consumer confidence hasn't been enough to even out the diabetes unit's performance. The company has posted huge gains across most of its diagnostic offerings over the past year, but diabetes has been a struggle, with sales declining 5% in the first 9 months of 2012.
Roche blames its diabetes difficulties on reimbursement cuts and pricing pressures in the sector, and last month the company announced it would slash 100 jobs in the unit and restructure its operations, putting blood glucose test development at its Indianapolis headquarters and moving insulin pump R&D to Germany.
Roland Diggelmann, head of Roche Diagnostics, has said the company plans to rethink its whole approach to diabetes, including cost structure, sales, marketing and innovation. Splitting up tests and devices is step one, he said, and the company will continue to streamline its sales force and production to get revenues up to par.
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