Dexcom (Nasdaq:DXCM) today unveiled its strategy to expand access to its glucose-sensing technology for millions around the world.
San Diego-based Dexcom held an Investor Day event in which it revealed plans to bring a new product to market in the U.S. in 2024. The company designed its new product for people who don’t use insulin — approximately 70% of Americans with diabetes.
Dexcom said it plans for its new product to feature a 15-day sensor and a cash-pay option. The company wants to offer a new software experience tailored for those not on insulin.
Earlier this year, Dexcom Chair, President and CEO, Kevin Sayer, hinted at potential new avenues when speaking to Drug Delivery Business News. He explained that the company wanted to broaden its focus, even revising its mission statement. Dexcom updated its mission — enabling people to take control of diabetes — by changing “diabetes” to “health.”
“Dexcom is building a world in which our care for users includes not only helping them in the management of chronic conditions, but the potential to help prevent the onset and progression of disease through better metabolic health,” Sayer said in a news release. “There is so much that people who don’t use insulin can learn by receiving continuous glucose data and seeing first-hand how diet, exercise, sleep, stress and other factors affect their overall health.”
Medicare coverage also plays a role, Dexcom says
In October, the Centers for Medicare & Medicaid Services (CMS) published a local coverage decision (LCD). It modified coverage criteria for continuous glucose monitors (CGMs). The modification includes people with diabetes who receive insulin treatment or have a history of problematic hypoglycemia. The proposal eliminates the requirement for frequent adjustments of the patient’s insulin treatment regimen. This falls on the basis of glucose measurement testing.
CMS published a final LCD expanding coverage for CGMs in March. This official ruling went into effect in April. The finalized version changed some language on the criteria. It amended the line saying “the beneficiary is insulin-treated with at least one daily administration of insulin” to, simply, “the beneficiary is insulin-treated.”
Dexcom and Abbott, two market leaders in the CGM space, applauded the decision. Analysts singled the two out as companies most likely to benefit from the changes. Dexcom launched its next-generation G7 CGM in the U.S. in February.
According to Dexcom, new projections following this expansion show 3-4 million Americans now have CGM coverage. Commercial insurers also followed Medicare’s lead faster than expected, Dexcom said. The company estimates that 60% commercial coverage is already in place for people with type 2 diabetes on basal insulin.
“Thanks to our efforts to continually expand coverage, millions more people now have access to Dexcom CGM and our industry-leading features such as connectivity to multiple automated insulin delivery systems, the urgent low soon alert, and follow—Dexcom-pioneered features that help keep users safe by helping them avoid extreme glucose fluctuations and stay within target range,” said Teri Lawver, EVP and chief commercial officer at Dexcom.
New financial outlook
Based on “strong performance,” Dexcom updated its year-end 2025 financial targets as well.
The company projects 2025 revenue to range between $4.6 billion and $5.1 billion. It previously projected between $4 billion and $4.5 billion. That’s also a significant rise in just two years, with 2023 revenues expected to land between $3.4 billion and $3.515 billion.
Dexcom also expects a non-GAAP gross profit margin of 65% and a non-GAAP operating profit margin of 21% (previously 20%). The company forecast an adjusted EBITDA margin of 31% (previously 30%).
“Dexcom continues to execute on our vision to drive better health outcomes throughout the world through our innovative sensing technology,” said Sayer. “Our growth opportunity is truly unique and we are pleased to be in a position to raise our 2025 financial targets as we grow our global customer base with an efficient and sustainable business model.”
Dexcom will be presenting data on its technology at the 83rd Scientific Sessions of the American Diabetes Association (ADA) in the coming days.