Shares in Dexcom (NSDQ:DXCM) rose 4% today after the company announced a partnership with UnitedHealth (NYSE:UNH) to assess if data from a continuous glucose monitor can help people with Type II diabetes manage their condition in a cost-effective way.
UnitedHealth is slated to use CGM data, as well as diet and exercise activity, in a study of 10,000 people that will launch within the next nine months. If the initial study is successful, UnitedHealth plans to kick off a network-wide initiative, Seeking Alpha reported.
The healthcare company is hoping to assess if CGM data combined with diet and exercise information can change a patient’s behavior and help them manage their blood sugar levels. If patients can gain control over their blood glucose numbers using diet and exercise, they are less likely to need expensive drugs.
DXCM shares were trading at $59.95 apiece in mid-afternoon activity today, up 4%.
Last week, Dexcom revealed that it inked a development deal with Eli Lilly (NYSE:LLY) to include its continuous glucose monitor in the insulin-maker’s connected delivery devices.
The pair plans to start clinical trials by the end of this year, as they hope to position the combination of their technologies as a comprehensive solution for people with diabetes.
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