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DexCom's (DXCM) Upcoming Launch to Boost Diabetes Management

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DexCom, Inc. (DXCM - Free Report) recently announced that the new Dexcom ONE Continuous Glucose Monitoring System (CGM) would be introduced in the U.K. in May. This new system is an easy-to-use real-time CGM (rt-CGM) and is more accessible and affordable for people suffering from diabetes in the country.

Presently, Dexcom ONE is in review to be added to drug tariffs throughout the U.K. regions. It is worth mentioning that Dexcom ONE will become part of the broad range of products offered by the company for people with diabetes in the U.K., including the Dexcom G6 CGM system and the upcoming Dexcom G7 CGM system. Dexcom ONE has similar innovative sensing hardware like Dexcom G6 and is appropriate for people with Type 1 or Type 2 diabetes using insulin.

This announcement is likely to strengthen DexCom’s robust product portfolio further.

More on the News

Per management, the diabetes community comprises a dynamic and inspiring group of individuals, and DexCom is committed to offering such individuals with innovative and impactful technology by expanding access to CGM technologies. This helps in driving enhanced health outcomes.

In fact, the upcoming launch of Dexcom ONE signifies a crucial step forward in diabetes management, while inclusion in the drug tariff can lead to more people benefiting from this life-altering technology.

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It is imperative to mention that Dexcom ONE is a wearable sensor and transmitter that helps people to be in control of their diabetes. This innovative technology helps eliminate the need for painful finger pricks on the back of continuous glucose level monitoring and sending real-time values wirelessly to a compatible smart device via the Dexcom ONE mobile app. Further, a range of modified alerts can aid users in avoiding potentially dangerous high or low glucose events.

Interestingly, this news comes on the heels of the National Institute for Health and Care Excellence (NICE) new guidelines for adults and children managing Type 1 diabetes. Per the new guidance, NICE recommends that adults with Type 1 diabetes be offered a choice of glucose sensors, including rt-CGM, while all children with Type 1 diabetes be offered rt-CGM, along with education for them as well as their families and/or caregivers on how to use their devices.

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 and the increasing geriatric population prone to diabetes are the primary factors driving this market’s growth. Hence, this announcement is well-timed for DexCom.

Recent Developments

In March, DexCom announced the receipt of CE Mark for its G7 CGM system in Europe, intended for people who have diabetes and are two years and older, including pregnant women. With this approval, the highly popular and best-selling real-time CGM in the world is now more powerful and easier to use with a small, all-in-one wearable and completely redesigned mobile app.

In the same month, the company announced that the Ontario government would offer coverage for the Dexcom G6 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 1 diabetes who are over two years of age and fulfill the coverage criteria.

Price Performance

Shares of the company have gained 40% in the past year compared with the industry’s growth of 2.6%.

Zacks Rank & Key Picks

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

Some better-ranked stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Edwards Lifesciences Corporation (EW - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .

AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has gained 39.3% against the industry’s decline of 54.1% over the past year.

Edwards Lifesciences, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 13.9%. EW’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 6.5%.

Edwards Lifesciences has gained 40.8% compared with the industry’s 1.5% growth over the past year.

Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.

Henry Schein has gained 27.1% compared with the industry’s rally of 8.3% over the past year.

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