Dexcom (NASDAQ:DXCM) who reported earnings
this afternoon continues to make solid progress on all fronts. Although sales
did not increase as much as Diabetic Investor anticipated 12% quarter over
quarter growth points to continued acceptance of continuous glucose monitoring.
The company still has hurdles to overcome which they plan on addressing next
year when they shift their marketing focus to directly targeting patients
rather than physicians and educators. This is a logical next step for the
company as CGM technology is already well accepted as a valuable tool by physicians
As Diabetic Investor has been reporting the
company also continues to make headway with their hospital based system in
partnership with Edwards LifeSciences (NYSE:EW). Diabetic Investor remains convinced
that as solid as their individual diabetes business is, the hospital product offers
the most potential in terms of future revenue.
Concurrent with today’s earnings release
was news the company has filed a shelf registration that if implemented could
provide the company with additional capital. During today’s call the company indicated
while the registration was filed today they have no immediate plans to access
the capital markets.
Basically Dexcom is following the path
Diabetic Investor anticipated ever since Terry Gregg took command. The company
now on solid ground is making steady progress to their long term goal which will
result in the company being acquired. Unlike conventional glucose monitoring
where market trends are negative, CGM market trends are improving. The same can
said for the Dexcom’s hidden gem their hospital based system. The reality is
Dexcom is not a one trick pony but has blossomed into a company with multiple product
platforms. Diabetic Investor is hardly surprised by this progress and while it
may not be as fast as some may have hoped, it sure beats the alternative. The bottom
line here is over the long term Dexcom remains one of the few valuable commodities
in the diabetes device sector.