What we think about DexCom (DXCM)
DexCom in Three Words: Knowledge Is Everything
Discuss DexCom in our Community Forum
Background
DexCom’s mission is to empower people to take control of their health and they do this through knowledge. Knowledge about blood sugar levels. The company is the leading maker of continuous blood glucose monitors (CGMs) – that is all it does and it does it very well. The company has developed a way to measure blood glucose without a fingerstick and keeps a constant watch on blood sugar levels, sending alerts when sugar levels rise or are predicted to fall to dangerous levels. The company uses data to show that CGMs provide the information to improve diabetes maintenance and reduce comorbidities. It also has been expanding its market beyond diabetes (type 1 and type 2) for use in health and wellness.
Knowledge is what DexCom provides – what a person’s blood glucose levels are. Being able to share that knowledge to make it usable is where the company really shines. It connects to devices that need its information to provide insulin to people who require it, and it works with several different manufacturers so patients have a choice. It connects to mobile devices so that patients and caregivers have access to the information, helping people make informed decisions about their care at any given moment. It also connects to health care providers so they can adjust care and guidances for patients, using actual patient data, and personalizing the experience. The ability to be a single source of data for so many, makes DexCom and its products central, literally and figuratively, to diabetes care.
The need for DexCom’s products is expanding and the company is supplying data and knowledge to support the use cases. Outside of diabetes care, the company is evolving to be used in pre-diabetes prevention, gestational diabetes, health and wellness (i.e. weight loss or fitness training.) The company has also shown its utility for GLP-1 therapy. This therapy was originally developed to help control type 2 diabetes but had the beneficial side effect of weight loss so it has become a high-demand weight loss treatment. Use of a CGM while taking GLP-1 therapy helps support dose titration and improves health outcomes.
The company has expanded its salesforce over the last two years as it has expanded its product line (it introduced the new G7 CGM) and market opportunity. It works with health care providers, increasingly primary care providers, and has made its products easily accessible in pharmacies instead of medical suppliers. The company is firmly established in the US with a high reimbursement rate for its products and it is continuing to expand outside of the US.
With the number of people living with type 1 and type 2 diabetes rising and the benefit of having knowledge about one’s blood sugar levels, DexCom, already the market leader, is positioned for extensive growth.
Conviction Rating Changes:
Join 7investing to get access to this section
Recent Company Updates:
Join 7investing to get access to this section