DexCom Continues to Shine Despite Growing Competition in CGM

Even though competition in the Continuous Glucose Monitoring (CGM) market is growing, DexCom continues to have momentum. The San Diego, CA-based company beat out 3Q18 expectations. Revenue for the quarter came in at $266.7 million vs. the consensus estimate of $241.3 million. The company said there was an increase of revenue by 44% in 3Q18, up from the $184.6 million in revenue earned in 3Q17. DexCom said it now expects to have sales of $975 million, which are up from the prior expectation of $925 million. Wall Street consensus was $930.83. DexCom has been facing increasing competition lately as its chief rival, Senseonics Holdings, scored a significant nod from FDA for the Eversense CGM. In 2017, DexCom received what some analyst thought was a stunning blow, when Abbott Laboratories received FDA approval for the Freestyle Libre Glucose Monitoring System. During that time, shares of DexCom dropped more than 36%. Despite the competition, DexCom has continued to move forward and has even taken part in the M&A fever sweeping medtech this year. In August, DexCom picked up Charlottesville, VA-based TypeZero for an undisclosed sum. “The team and [TypeZero’s] technology align well with our strategy,” Steven Robert Pacelli, executive Vp of Strategy and Corporate Development at DexCom, said according to a transcript from Seeking Alpha. “Specifically, the inControl closed-loop algorithm provides DexCom with th...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news