Dexcom Reports

Dexcom Reports

There is a reason why Diabetic Investor continues to believe that Dexcom (NASDAQ: DXCM) is the posterchild for how a diabetes device company should be run. Celebrating their 10th anniversary the company has undergone an incredible transformation over the years. Yet, this being a diabetes device company and devices do occasionally have issues no one should believe that Dexcom would not experience growing pains. Although given how well the company has done recently it seemed as they could do no wrong.

During this afternoon’s earnings call the company with incredible candor addressed the recent receiver recall head on and actually acknowledged they could have done a better job handling the recall. Even better they publicly apologized to patients and promised to do better as they go forward. This is a welcome relief from how others have handled recalls when companies typically run away from a problem. Dexcom ran to the problem, acknowledged mistakes were made, apologized and most importantly fixed the problem.  We hope every diabetes device follows Dexcom’s example in the future.

As the company noted even with the recall they are moving forward, not only was growth outstanding up 60% compared to last year’s first quarter, they noted their patient base has doubled over the past 15 months. This at a time when every other diabetes device company is struggling to grow at all.

Even better they announced an upcoming FDA panel meeting to receive as non-adjunctive claim, a claim which would pave the way for Medicare reimbursement. Currently the Dexcom label states that patients should not dose insulin based on CGM readings but must use a conventional finger stick monitor before dosing insulin. Although it is well known that Dexcom patients are ignoring the label, getting this change to label will open the door to even greater sales growth.

As expected all the company’s partnerships, whether it be with insulin pump companies or Google, are moving along nicely.

Think about this for just a moment – the installed patient base has doubled over the last 15 months- the company proactively deals with a receiver recall – they PUBLICLY acknowledge mistakes were made and APOLOGIZE – yet they don’t miss a beat when it comes to moving forward with initiatives which will drive even greater growth. Now if this is not the posterchild for how a diabetes device company should be run we don’t what is.

Dexcom’s success is not happening by accident, the company’s success is driven by a strong core value of putting the patient, that’s right the people who actually use their product, first. Kudos to Dexcom and let’s hope everyone else in this sector is not just watching but learning too.