DexCom, Inc. (DXCM - Free Report) recently collaborated with Companion Medical to enable a direct exchange of CGM (Continuous Glucose Monitoring) data from InPen into both the companies’ software applications. The latest development is likely to pave the way for advanced diabetes decision support apart from fortifying DexCom’s foothold in the CGM space.
Notably, as part of this alliance, Dexcom and Companion Medical will help InPen users display long-acting and rapid-acting insulin data in the Dexcom CLARITY Diabetes Management Software.
For investors’ notice, Companion Medical is a developer of advanced technology to improve diabetes care. The company’s flagship product InPen is the first and only FDA-cleared smart insulin pen which enables constant tracking and monitoring of blood glucose levels.
DexCom has collaborative agreements with several companies, which should not only bring in cash in the form of milestone payments and royalties but should also help expand its product use.
In recent times, DexCom acquired TypeZero Technologies and expects to launch the first automated insulin delivery system using TypeZero's InControl algorithm by 2019. DexCom also has agreements with companies like Tandem Diabetes Care, Animas Corp (a subsidiary of Johnson & Johnson) and Edward Lifesciences (EW - Free Report) for the development and commercialization of products utilizing its technologies.
Diabetes is one of the most challenging health conditions in the United States. About 1.4 million new cases of diabetes are diagnosed every year in the country, thanks to the rise in geriatric population, urbanization and poor lifestyle practices.
Going by an article of Research and Markets, the blood glucose monitoring devices market is expected to witness a CAGR of more than 9% till 2024.
Over the past year, this Zacks Rank #2 (Buy) stock has rallied 29.8% against the industry’s 3.8% decline.
Other Key Picks
Other top-ranked stocks in the broader medical space are Cerner Corporation (CERN - Free Report) and Penumbra (PEN - Free Report) . While Cerner sports a Zacks Rank #1 (Strong Buy), Penumbra has a Zacks Rank #2.
Cerner’s long-term earnings growth rate is expected to be 13.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
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