DexCom, Inc. ( DXCM Quick Quote DXCM - Free Report) announced that its DexCom ONE continuous glucose monitoring (CGM) system has been launched in France for people with diabetes. The latest CGM sensor from the company’s portfolio has been added under the country’s reimbursement packages that will provide an effective diabetes management system at affordable price.
The DexCom ONE CGM sensor can be used by all patients with type I and type II diabetes, aged two years and older, undergoing intensive insulin therapy — patients getting more than three insulin injection every day or using an external insulin pump.
Shares of DexCom have lost 14.9% year to date against the
industry’s 5.8% growth. The S&P 500 Index has gained 17.1% in the same time frame. Significance of the Launch
The use of DexCom ONE has been clinically proved to achieve lower HbA1C, reduce hyper and hypoglycaemia, and increase time in range. Meanwhile, the launch with reimbursement coverage will make the sensor accessible to majority of the eligible patient population. DexCom ONE will likely lead to confident treatment decisions in real time, without scanning, along with a real-time CGM with alerts.
The availability of DexCom ONE will also provide another option of a real-time CGM sensor for high-risk patients with type I diabetes and a new option to high-risk type II diabetes patients. Another real-time CGM sensor from the company’s portfolio, DexCom G6, is already available for type I patients in France. The G6 sensor is currently available through integrations with leading insulin delivery systems and digital health apps.
With the launch in France, the targeted patient population by DexCom ONE will increase by half a million, per the company’s statement. An improved accuracy and effectiveness pf DexCom compared with other glucose monitoring systems with reimbursement coverage may lead to accelerated adoption of DexCom ONE in France. This implies a significant growth opportunity for the company going ahead. The latest launch is likely to help the company to sustain its strong top and bottom-line growth trend, potentially leading to higher stock price.
report by Knowledge Sourcing Intelligence, the wearable CGM market in France was valued at $90.6 million in 2021 and is likely to witness a CAGR of 17.4% (till 2028) to reach $278 million. Factors like high prevalence of type I and type II diabetes, launch of improved CGM devices, government awareness programs and reimbursement coverage for CGM devices are expected to drive the market.
Given the market potential, the launch of DexCom ONE is likely to provide a boost to DexCom’s already booming CGM business.
In September, DexCom announced the availability of DexCom G6 CGM system that can connect with the
Omnipod 5 Automated Insulin Delivery system in Germany.
In July, DexCom announced that its next-generation DexCom G7 CGM system received
Health Canada’s approval for people with all types of diabetes, aged two years and above.
The same month, DexCom announced better-than-expected
second-quarter results. Impressive contributions from the Sensor segment, and domestic and international revenue growth were the key catalysts. Moreover, expansion of coverage for CGM systems during the quarter supported growth, which is likely to continue for the rest of 2023. The availability of new sensors like G6 and G7 in new international markets is also boosting revenue growth. Zacks Rank & Stocks to Consider
DXCM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are
Align Technology ( ALGN Quick Quote ALGN - Free Report) , HealthEquity, Inc. ( HQY Quick Quote HQY - Free Report) and McKesson Corporation ( MCK Quick Quote MCK - Free Report) .
Align Technology, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 57.5% year to date compared with the
industry’s 11.4% growth.
HealthEquity, carrying a Zacks Rank #2 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, delivering an average surprise of 9.1%.
The company’s shares have rallied 12% year to date against the
industry’s 10.3% decline.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.1%.
The stock has rallied 12% year to date compared with the
industry’s 11.4% growth.