In Dexcom’s latest earnings report, executives reported not only growing revenues and sales volume for the company, but a sense that the whole category of CGMs has arrived and is transforming diabetes care for the better, noting trends observed at the recent annual meeting of the American Diabetes Association.
“We have been on record for years telling that the future is ‘CGM First’ and we believe that future is here,” CEO Kevin Sayer said. “At ADA, CGM was no longer a minor presence relative to the various drug therapies. Instead, Dexcom CGM featured prominently in standing-room-only product presentations, academic papers and as the driver of automated insulin delivery devices, all of which reflect the growing market awareness that we’re seeing.”
Dexcom’s second quarter revenue hit $336 million, a 40% increase year over year. The company’s income was $7.8 million, or $0.08 per share. As a result of a stronger-than-expected first half, the company has adjusted its full-year 2019 revenue projection from $1.325 billion to $1.375 billion.
ON THE RECORD
“I think awareness has become a huge factor in our marketplace,” Sayer said. “Many more people are aware of CGM and what it can do now than have ever been before. As we do our own marketing research and ask about our brand awareness and CGM awareness, the responses are much, much better than we’ve ever seen. I would tell you also that G6 is a big deal. As patients have learned about G6 and learned the experience they can have and all that it does, this has been extremely helpful in our growth.”
Over the past quarter, the company has seen growth in all its business segments, including Medicare and international. The company is also shifting its distribution strategy from traditional durable medical equipment channels to pharmacy channels, a move that could broaden availability, though it might lower per-patient revenue. Sayer said that so far the growth from new patients has offset the per-patient revenue drop.
Dexcom has a number of partner launches in the pipeline, including a number of partnerships around insulin delivery, whether pumps (through partnerships with Tandem and Insulet) or pens (working with Novo Nordisk and Companion Medical).
The company is hoping to do a small launch of the G7 — its next-generation device created in partnership with Verily — in 2020, with a full rollout in 2021. The company is also looking at the launch of a professional version of G6 in 2020, and is working on expanding soon to new international markets including Japan and Canada.
Date: August 14, 2019
Source: Mobihealth News