Dexcom (DXCM) - >>> The Internet of Things goes far beyond consumer devices. Dexcom is focused on diabetes management, specifically medical devices for continuous glucose monitoring. The company’s G6 system includes an auto-applicator, a sensor and transmitter, and a touchscreen receiver displaying real-time glucose data. Compatible smartphones and smartwatches can also be used to display data.
The number of people in the U.S. with diagnosed diabetes grew from 1.58 million in 1958 to 23.35 million in 2015, according to data from the Centers for Disease Control. Today, more than 37 million Americans have diabetes, and 96 million American adults have prediabetes.
Dexcom estimates that market penetration for continuous glucose monitoring for people on intensive insulin therapy is 35% to 40% for type 1 diabetes and just 15% for type 2 diabetes.
The combination of growing rates of diabetes and the transition to continuous glucose monitoring will give Dexcom plenty of growth opportunities in the coming years. In 2021, its revenue grew 27% to $2.45 billion.
The pandemic didn’t derail Dexcom’s growth despite plenty of early uncertainty. For 2022, the company expects revenue to grow between 15% and 20%.
People with underlying medical conditions, including type 2 diabetes, are at higher risk of developing severe cases of COVID-19. This could prompt more people to turn to continuous glucose monitoring in the long run, even after the pandemic has passed.
Dexcom has historically traded at expensive multiples, but for those willing to take on some risk to gain exposure to both IoT and healthcare, it’s a stock to consider.
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DexCom, Inc. (DXCM), a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices for specific and permitted use cases, including non-medical device applications, medical device data analysis, integrated continuous glucose monitoring systems (iCGM) secondary display alarms, active patient monitoring, and treatment decisions; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. DexCom, Inc. has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. The company markets its products directly to endocrinologists, physicians, and diabetes educators. DexCom, Inc. was incorporated in 1999 and is headquartered in San Diego, California.
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