Replies to post #248440 on Biotech Values

[DewDiligence]

Aha. I manage a family portfolio with a modest ZBH holding, and I was wondering why the stock has been selling off lately, particularly after a bullish 2Q23 earnings report.

I have a large position in ABT, but I don't think ABT will be strongly affected by the uptake of weight-loss drugs. ABT is not a player in the hip- and knee-implant market, ZBH's main business, where obesity clearly plays a major role. Meanwhile, ABT is strong beneficiary of the increasing wolrdwide prevalence of T2D (#msg-172393915).

[DewDiligence]

DXCM statement_on GLP-1 drugs lifts_stocks_of med-device companies:

https://www.investors.com/news/technology/dexcom-stock-leads-a-medtech-rally-how-it-allayed-concerns-of-a-weight-loss-bloodbath/

Dexcom (DXCM) stock helped lead a medical surge Wednesday after the company allayed concerns that popular weight-loss drugs like Wegovy would tamp down usage of its diabetes devices.

Instead, the inverse appears to be true, Dexcom said in a presentation Tuesday. Across all segments of patients with type 2 diabetes, use of continuous glucose monitors…increased after beginning treatment with GLP-1 drugs like Wegovy, Ozempic and Mounjaro.

…Dexcom analyzed insurance claims from Optum. On average, CGM use doubled among patients taking intensive insulin regimens after they began treatment with a GLP-1 drug.

For patients on basal insulin or non-insulin therapies, CGM use increased roughly fourfold after beginning GLP-1 treatment.

Today’s moves:

DXCM +7%
ZBH +4%
TNDM +3%
PODD +3%
ABT +1%

p.s. Contrary to what the IBD article says, ZBH does not sell devices for sleep apnea.