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DexCom's (DXCM) G7 CGM System Gets Nod From Health Canada
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DexCom, Inc. (DXCM - Free Report) recently announced that its next-generation Dexcom G7 Continuous Glucose Monitoring (CGM) System received Health Canada’s approval for people with all types of diabetes aged two years and above. The Dexcom G7 has been built on the performance of Dexcom CGM, which has been clinically proven to lower A1C, reduce hypoglycemia (low blood sugar) and improve time in range.
Although approved by Health Canada, Dexcom G7 is not yet available for purchase. Dexcom Canada is working to make Dexcom G7 available to diabetic Canadians by the end of 2023.
Dexcom is also currently working with its insulin pump partners to integrate Dexcom G7 into current and future automated insulin delivery systems. With the latest regulatory approval, DexCom is expected to solidify its foothold in the global CGM business.
Significance of the Approval
Per Dexcom’s estimates, diabetes affects more than 3 million Canadians, which requires around-the-clock management of glucose levels and daily treatment decisions to manage the disease. Dexcom believes that Health Canada’s approval of the G7 CGM will provide access to an innovative technology that simplifies diabetes management. It has also been shown to significantly (by up to 42%) reduce hospitalizations and emergency room visits due to hypoglycemia.
Per an expert familiar with the use of CGM for diabetes management, following the approval of Dexcom G7 in Canada, patients will likely have a new, simple-to-start and easy-to-use tool in their diabetes management toolbox to effectively manage their diabetes and make important health decisions backed by health data and proven results.
Dexcom’s management believes that the next-generation Dexcom G7 with its greater accuracy, a simplified user experience, proven results and extensive digital connectivity will likely support greater quality of life and improved outcomes for diabetics.
Industry Prospects
Per a report by Grand View Research, the global CGM device market size was valued at $7,816.8 million in 2022 and is expected to reach $11.2 billion by 2030 at a CAGR of 4.4%. Factors like the rising cases of diabetes and the increasing adoption of CGM devices are likely to drive the market.
Given the market potential, the latest regulatory approval is expected to provide a significant boost to DexCom’s business globally.
Notable Developments
Last month, DexCom announced that the Dexcom G6 Real-Time CGM System is the only CGM to connect to the Omnipod 5 AID System, thus helping users to protect against high and low glucose levels.
In April, DexCom announced its first-quarter 2023 results, wherein it registered a solid uptick in its overall top line, both on a reported and organic basis. It also recorded robust growth in U.S. and international revenues in the quarter. During the earnings release, management confirmed the commencement of the launch of Dexcom G7 in the United States and the finalization of coverage for Dexcom G7 with the U.S. Centers for Medicare & Medicaid Services, providing Medicare beneficiaries reimbursed access to Dexcom’s latest-generation technology.
Price Performance
Shares of the company have gained 62.1% in the past year compared with the industry’s 9.8% growth and the S&P 500's 15.7% 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 in the broader medical space are Hologic, Inc. (HOLX - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Hologic, carrying a Zacks Rank #2 at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 12.7% compared with the industry’s 9.8% rise in the past year.
HealthEquity, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 2.4% against the industry’s 15.3% decline over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 42.2% against the industry’s 22.2% decline over the past year.
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DexCom's (DXCM) G7 CGM System Gets Nod From Health Canada
DexCom, Inc. (DXCM - Free Report) recently announced that its next-generation Dexcom G7 Continuous Glucose Monitoring (CGM) System received Health Canada’s approval for people with all types of diabetes aged two years and above. The Dexcom G7 has been built on the performance of Dexcom CGM, which has been clinically proven to lower A1C, reduce hypoglycemia (low blood sugar) and improve time in range.
Although approved by Health Canada, Dexcom G7 is not yet available for purchase. Dexcom Canada is working to make Dexcom G7 available to diabetic Canadians by the end of 2023.
Dexcom is also currently working with its insulin pump partners to integrate Dexcom G7 into current and future automated insulin delivery systems.
With the latest regulatory approval, DexCom is expected to solidify its foothold in the global CGM business.
Significance of the Approval
Per Dexcom’s estimates, diabetes affects more than 3 million Canadians, which requires around-the-clock management of glucose levels and daily treatment decisions to manage the disease. Dexcom believes that Health Canada’s approval of the G7 CGM will provide access to an innovative technology that simplifies diabetes management. It has also been shown to significantly (by up to 42%) reduce hospitalizations and emergency room visits due to hypoglycemia.
Per an expert familiar with the use of CGM for diabetes management, following the approval of Dexcom G7 in Canada, patients will likely have a new, simple-to-start and easy-to-use tool in their diabetes management toolbox to effectively manage their diabetes and make important health decisions backed by health data and proven results.
Dexcom’s management believes that the next-generation Dexcom G7 with its greater accuracy, a simplified user experience, proven results and extensive digital connectivity will likely support greater quality of life and improved outcomes for diabetics.
Industry Prospects
Per a report by Grand View Research, the global CGM device market size was valued at $7,816.8 million in 2022 and is expected to reach $11.2 billion by 2030 at a CAGR of 4.4%. Factors like the rising cases of diabetes and the increasing adoption of CGM devices are likely to drive the market.
Given the market potential, the latest regulatory approval is expected to provide a significant boost to DexCom’s business globally.
Notable Developments
Last month, DexCom announced that the Dexcom G6 Real-Time CGM System is the only CGM to connect to the Omnipod 5 AID System, thus helping users to protect against high and low glucose levels.
In April, DexCom announced its first-quarter 2023 results, wherein it registered a solid uptick in its overall top line, both on a reported and organic basis. It also recorded robust growth in U.S. and international revenues in the quarter. During the earnings release, management confirmed the commencement of the launch of Dexcom G7 in the United States and the finalization of coverage for Dexcom G7 with the U.S. Centers for Medicare & Medicaid Services, providing Medicare beneficiaries reimbursed access to Dexcom’s latest-generation technology.
Price Performance
Shares of the company have gained 62.1% in the past year compared with the industry’s 9.8% growth and the S&P 500's 15.7% 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 in the broader medical space are Hologic, Inc. (HOLX - Free Report) , HealthEquity, Inc. (HQY - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Hologic, carrying a Zacks Rank #2 at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 12.7% compared with the industry’s 9.8% rise in the past year.
HealthEquity, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 22%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 9.1%.
HealthEquity has gained 2.4% against the industry’s 15.3% decline over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 42.2% against the industry’s 22.2% decline over the past year.