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Dexcom (DXCM) G6 CGM System Gets Public Coverage From Ontario

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Dexcom, Inc. (DXCM - Free Report) recently announced that the Ontario government will offer coverage for the Dexcom G6 continuous glucose monitoring (CGM) System effective Mar 14, 2022. The government is going to offer this coverage through its Assistive Devices Program (ADP) for people staying in the province living with type one diabetes and are over two years of age and fulfill the coverage criteria.

It is noteworthy to mention that the back of the upper arm insertion site is for ages 18 and above.

Ontario now joins six other provinces or territories, most recently Alberta, providing public coverage for CGM systems under provincial health plans. The expanded public coverage for CGM can help more people to access this standard-of-care technology, thereby enabling them to manage a life-long chronic illness more efficiently.

This announcement is likely to boost Dexcom’s already strong leadership in CGM connected solutions space.

More on the News

Per management at Dexcom, the company remains committed to bringing substantial value to the Ontario healthcare system through its G6 CGM System by working closely with governments throughout Canada. This in turn is likely to ensure that each and every person living with diabetes has access to the care required.

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It is important to mention here that Dexcom CGM use is proven to enhance glycemic control and can lower the risk of costly long-term diabetes-related complications in comparison to fingerstick monitoring.

Market Prospects

Per a report by Grand View Research, the global CGM device market size was valued at $4.7 billion in 2020 and is estimated to witness a CAGR of 10.1% from 2021 to 2028. The growing incidence of diabetes coupled with the increasing geriatric population prone to diabetes is the primary factor driving this market’s growth. Hence, this announcement is well-timed for Dexcom.

Recent Developments

This month, the company received the FDA’s Breakthrough Device Designation for the Dexcom CGM system’s use in the hospital setting. The designation is expected to offer a more efficient and streamlined review pathway to enable Dexcom CGM technology expand the company’s footprint in the hospital market faster.

Last month, Dexcom announced that people with diabetes under 18 years of age who need ongoing use of insulin or insulin pump therapy are eligible for public coverage of the Dexcom G6 CGM System via Alberta Health.

Price Performance

Shares of the company have gained 7.8% in the past year against the industry’s 10.1% fall.

Zacks Rank & Key Picks

Currently, Dexcom carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .

AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.

Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently sports a Zacks Rank #2 (Buy).

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.

McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2.

McKesson’s long-term earnings growth rate is estimated at 11.8%. MCK’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.

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