Silicon Valley/San Jose Business Journal - May 21, 2001
http://sanjose.bcentral.com/sanjose/stories/2001/05/21/smallb3.html

Small Business Insights
	From the May 18, 2001 print edition

Firm's gadget arms diabetics with weapon to fight disease

Susan Mueller

Russell Potts says his company's invention could cut $67 billion in annual costs to treat diabetics nationwide, not to mention countless savings in pain and suffering -- all with a simple flick of the wrist.

Mr. Potts is research vice president for Cygnus Inc., whose GlucoWatch Biographer monitors a diabetic's blood glucose level through the patient's interstitial tissue. The instrument is worn like a watch and can give readings as frequently as every 20 minutes.

Mr. Potts says diabetes care in the United States costs $100 billion annually in care for lost eyesight and limbs, heart attacks, kidney failure and other ailments. The two-thirds in savings could go toward research to help the 10 million diagnosed diabetics and the estimated 18 million who remain undiagnosed.

"The National Institutes of Health did a 1993 clinical study costing $150 million," says Mr. Potts.

The physical damage that uncontrolled diabetes causes starts with high blood glucose levels, Mr. Potts says. Very few diabetics are willing to stab their fingertips eight times a day to balance food intake with insulin shots.

The Food and Drug Administration approved GlucoWatch in March, and production is expected within six months, he says. It works like a nicotine patch in reverse and can be set to signal high or low levels, when action must be taken.

Mr. Potts says the hope is that diabetics will take charge of their disease the way AIDS patients did.

The idea for the glucose monitor originated with Richard Guy at the University of California at San Francisco, according to Mr. Potts. Cygnus licensed it, and conceived the sensors, electronics, and computer that make it work. The primary team at the 100-employee company -- publicly traded on the Nasdaq exchange -- includes Mr. Potts, Janet Tamada and Michael Tierney.

Mr. Potts says he's wanted to be a scientist since junior high. His life took a major turn when the family moved from a parochial community in Michigan to the New York City area. He says he became culturally and ethnically dazzled at age 17, adding that his wife is a professional photographer and artist.

This couple enjoys galleries, symphonies, opera, jazz and the bright face of their young grandson.

Essential business philosophy: Keep the end-user in mind.

Best way to keep competitive edge: Stay physically and intellectually active.

Guiding principle: The Golden Rule.

Yardstick of success: Did it help someone and did I enjoy doing it?

Goal yet to be achieved: Speak fluent Italian.

Best business decision: Sticking with the GlucoWatch project.

Worst business decision: I really can't name one.

Toughest business decision: Turning down other exciting projects to finish the GlucoWatch.

Biggest missed opportunity: Not buying tech stocks in 1995.

Mentors: My father, father-in-law and Ph.D. adviser.

Word that best describes you: Optimist.

Like best about the job: The sense of fulfillment.

Like least about the job: The commute.

Pet peeve: People who are late.

Most important lesson learned: Technology alone is not enough. You need good people, a good idea, a good market, etc.

Person most interested in meeting: I'm not sure.

Most respected competitor: MiniMed.

First choice of new career: Author.

Favorite quote: We should "treat success and failure as the twin impostors they are" -- Kipling.

Most influential books: "Innovator's Dilemma," by Clay Christenson; "Sheltering Sky" by Paul Bowles.