DexCom Inc. (NSDQ:DXCM) posted its preliminary financial results for the 4th quarter, meeting analysts’ expectations on Wall Street and sending its shares upwards.
The San Diego, Calif.-based company said it expects a total revenue of $168 million for Q4, a 28% increase from the same period in 2015, while analysts on The Street were looking for sales of $167.5 million. DexCom also said it anticipates a total revenue of $570 million for 2016, in line with the $569.8 million consensus.
“2016 was a record year for DexCom. We estimate that 80,000 to 90,000 new patients adopted DexCom Continuous Glucose Monitoring worldwide and we ended the year with approximately 200,000 patients globally, up from approximately 140,000 at the end of 2015,” president & CEO Kevin Sayer said in prepared remarks. “In addition, CGM received a positive reimbursement decision in Germany, which we believe will significantly expand our international opportunity in the coming years. In December, we obtained our non-adjunctive label from the FDA, the first critical step toward our objectives of eliminating finger-stick testing and expanding access to CGM for Medicare patients. DexCom now offers the only CGM system approved to make insulin dosing decisions. With our continued growth and these milestones, we believe we are well-positioned for continued success in 2017 and beyond.”
DexCom pegged its full year revenue for 2017 between $710 and $740 million, forecasting lower than The Street’s estimate of $753.2 million.
DXCM shares were trading at $65.94 in mid-morning activity today, up 5.5%.
The company won an expanded FDA indication for its G5 mobile continuous glucose monitoring system in December, now approved as a non-adjunctive device for diabetes treatment. With the approval, Dexcom touted that its device is the ‘1st and only’ CGM system that can “make daily diabetes treatment decisions” without requiring a blood sample through a finger prick every time.
The system still requires 2 samples a day for calibration purposes, so a blood sample is still necessary for the device to work.
Leerink Partners estimated that sales growth for the company will move to the 30% range beyond 2017, citing the likelihood of G6 approval in 2018, CMS coverage and continued international expansion.
