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DexCom (DXCM) Gets Health Canada Approval for G6 CGM System

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DexCom, Inc. (DXCM - Free Report) announced that its next generation G6 CGM system has received an approval from Health Canada, a regulatory authority. The device is designed to cater to diabetes patients in Canada, aged two years and above.
 
The G6 commercial launch in Canada is slated to occur in late 2019. Interestingly, DexCom is already planning for the worldwide launch of the product in the near future.

About G6 CGM

DexCom’s G6 CGM system is a diabetes management device. G6 was initially launched in the markets of United States, United Kingdom, Ireland and several other European nations, where it registered robust sales figures in the last reported quarter.

For investors’ notice, G6 is an upgradation of DexCom’s flagship G5 mobile system. The G5 mobile system is used to measure glucose levels with a sensor that is fitted just underneath the skin.
 
DexCom is also gearing up for the launch of the G7 system in late 2020 or early 2021. With G7, the company aims to deliver cost-effective health benefits to people suffering from non-intensive Type 2 diabetes.

Market Prospects

Per Allied Market Research, the global market of CGM systems is projected to reach $4,921 million by 2024, multiplying at a CAGR of 22.9% (from 2018 to 2024). Considering the bountiful prospects, the launch of the G6 CGM system by DexCom is considered to be strategically timed.

Not to forget, the CGM systems market is an integral part of the broader diabetic devices space, which also includes blood glucose meters and insulin delivery devices.

Other Recent Developments

In November 2018, DexCom amended the collaboration and licensing agreement with Verily for the development of a fully disposable real-time CGM. The agreement enabled DexCom to more efficiently deal with Type 2 diabetes.

DexCom has been making solid progress with Insulet for developments on its Horizon platform. DexCom announced a development agreement with Lilly to incorporate CGM into the latter’s Connected Diabetes Ecosystem. This will enable Dexcom to introduce both connected pumps and pens to the market.
 
In October 2018, the company announced the collaboration of its smart pen and integration program with Novo Nordisk.

The company plans to continue investing in several other similar partnerships throughout 2019 and expects DexCom integrated smart pen systems to become commercially accessible to consumers by 2020.

Price Performance

The stock has outperformed the S&P 500 Index over the past three months. The stock has gained 10.8% compared with the index’s growth of 4.5%.

Zacks Rank & Other Key Picks

Currently, DexCom has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader medical space include ABIOMED, Inc., , Penumbra, Inc., (PEN - Free Report) , and Masimo, Inc. (MASI - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ABIOMED’s long-term earnings growth rate is expected to be 27.67%.

Penumbra’s long-term earnings growth rate is projected to be 20%.

Masimo’s long-term earnings are projected to grow 15.6%.

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