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Dexcom's (DXCM) G6 CGM System Gets Coverage in Manitoba
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Dexcom, Inc. (DXCM - Free Report) recently announced that people with type 1 diabetes who are of 25 years of age or below may now be eligible for provincial coverage of the Dexcom G6 continuous glucose monitoring (“CGM”) System via Manitoba Health and Seniors Care. Users will now be able to order and pick up their Dexcom CGM supplies through their local pharmacy, as part of the Manitoba Health coverage program.
For investors’ note, Manitoba joins the ranks of British Columbia, Yukon, Quebec and Saskatchewan in regard to providing public coverage of CGM systems under provincial health plans.
With the latest favorable coverage decision, Dexcom is expected to solidify its foothold in the global CGM business.
Few Words on Dexcom G6 CGM
The Dexcom G6 offers real-time alerts, including a predictive Urgent Low Soon alert, and can warn the user in advance of hypoglycemia (lower than normal blood sugar level), thus providing time to take appropriate action before it actually occurs. By using the Dexcom Follow App, parents and caregivers can also access the patient’s glucose levels remotely and be alerted if they are deviating from the target glucose range.
Significance of the Coverage
The expanded public coverage for CGM is expected to provide access to the CGM technology, which has become a new standard of care for a greater number of patients, thereby enabling them to manage a life-long chronic ailment.
Per management, the provision of coverage to the Dexcom G6 CGM by increasing number of provinces is likely to simplify diabetes management through real-time CGM and data-sharing. This, in turn, is expected to aid the diabetics and their care providers to prevent any untoward incident.
Industry Prospects
Per a report by Grand View Research, the global CGM device market size was valued at $3,929.7 million in 2019 and is expected to reach $10.4 billion by 2027 at a CAGR of 12.7%. Factors like rising cases of diabetes and increasing adoption of CGM devices are likely to drive the market.
Given the market potential, the latest coverage announcement is expected to provide a significant boost to Dexcom’s business globally.
Notable Developments
Of late, Dexcom has witnessed a few notable developments across its business.
In September, the company, announced that its G6 CGM System is now covered by the Non-Insured Health Benefits Program for diabetics aged between two and 19 requiring intensive insulin therapy. The expanded coverage is expected to provide access to the system to a wider pool of First Nations and Inuit children and adolescents, thereby potentially enabling them to better manage the life-long chronic illness.
Dexcom, in July, reported robust second-quarter 2021, where it witnessed strength in both its domestic and international revenues.
The same month, the company received the FDA’s clearance for Dexcom Partner Web APIs, which will enable approved third-party developers to integrate real-time CGM data into their digital health apps and devices.
Price Performance
Shares of the company have gained 43.8% in the past year compared with the industry’s 11.8% growth and the S&P 500's 29.6% rise.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, Dexcom carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , Omnicell, Inc. (OMCL - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Image: Shutterstock
Dexcom's (DXCM) G6 CGM System Gets Coverage in Manitoba
Dexcom, Inc. (DXCM - Free Report) recently announced that people with type 1 diabetes who are of 25 years of age or below may now be eligible for provincial coverage of the Dexcom G6 continuous glucose monitoring (“CGM”) System via Manitoba Health and Seniors Care. Users will now be able to order and pick up their Dexcom CGM supplies through their local pharmacy, as part of the Manitoba Health coverage program.
For investors’ note, Manitoba joins the ranks of British Columbia, Yukon, Quebec and Saskatchewan in regard to providing public coverage of CGM systems under provincial health plans.
With the latest favorable coverage decision, Dexcom is expected to solidify its foothold in the global CGM business.
Few Words on Dexcom G6 CGM
The Dexcom G6 offers real-time alerts, including a predictive Urgent Low Soon alert, and can warn the user in advance of hypoglycemia (lower than normal blood sugar level), thus providing time to take appropriate action before it actually occurs. By using the Dexcom Follow App, parents and caregivers can also access the patient’s glucose levels remotely and be alerted if they are deviating from the target glucose range.
Significance of the Coverage
The expanded public coverage for CGM is expected to provide access to the CGM technology, which has become a new standard of care for a greater number of patients, thereby enabling them to manage a life-long chronic ailment.
Per management, the provision of coverage to the Dexcom G6 CGM by increasing number of provinces is likely to simplify diabetes management through real-time CGM and data-sharing. This, in turn, is expected to aid the diabetics and their care providers to prevent any untoward incident.
Industry Prospects
Per a report by Grand View Research, the global CGM device market size was valued at $3,929.7 million in 2019 and is expected to reach $10.4 billion by 2027 at a CAGR of 12.7%. Factors like rising cases of diabetes and increasing adoption of CGM devices are likely to drive the market.
Given the market potential, the latest coverage announcement is expected to provide a significant boost to Dexcom’s business globally.
Notable Developments
Of late, Dexcom has witnessed a few notable developments across its business.
In September, the company, announced that its G6 CGM System is now covered by the Non-Insured Health Benefits Program for diabetics aged between two and 19 requiring intensive insulin therapy. The expanded coverage is expected to provide access to the system to a wider pool of First Nations and Inuit children and adolescents, thereby potentially enabling them to better manage the life-long chronic illness.
Dexcom, in July, reported robust second-quarter 2021, where it witnessed strength in both its domestic and international revenues.
The same month, the company received the FDA’s clearance for Dexcom Partner Web APIs, which will enable approved third-party developers to integrate real-time CGM data into their digital health apps and devices.
Price Performance
Shares of the company have gained 43.8% in the past year compared with the industry’s 11.8% growth and the S&P 500's 29.6% rise.
Zacks Rank & Other Key Picks
Currently, Dexcom carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , Omnicell, Inc. (OMCL - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Henry Schein’s long-term earnings growth rate is estimated at 13.9%. The company presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Omnicell’s long-term earnings growth rate is estimated at 16%. It currently has a Zacks Rank #2.
West Pharmaceutical’s long-term earnings growth rate is estimated at 27.3%. It currently carries a Zacks Rank #2.