Dexcom Reports – Drawing a line in the sand.

Dexcom Reports – Drawing a line in the sand.

Rarely in the many years Diabetic Investor has been following the career of Dexcom (NASDAQ:DXCM) CEO Terry Gregg have we seen him draw a line in the sand, something he did with passion during this afternoon’s first quarter conference call. After seeing the data for their fourth generation sensor and submitting a PMA to the FDA, Mr. Gregg is even more confident in something that Diabetic Investor has known for some time, the other sensors on the market or the many under development don’t hold a candle to the Dexcom system.

While Dexcom does not have the advantage of installed user base of 300,000+ insulin pump patients as Medtronic (NYSE:MDT) does, neither do they have to worry about the many customer complaints Medtronic is receiving regarding the poor performance or unacceptable failure rate of their sensors. For all their bluster about their system, the fact remains that the Medtronic system is vastly inferior to the Dexcom system.

The harsh reality in the battle for supremacy in the continuous monitoring market is reliability trumps connectivity. As we have noted many times in the past when we have written about the quest to develop and commercialize an artificial pancreas all it takes is one break in the chain for this system to go from be a life saver to killer.  Given the numerous issues with the Medtronic sensor it really doesn’t help any that the sensor is designed to communicate with the insulin pump. This is isn’t a case of garbage in leads to garbage out, this is a case of data not even making it to the pump.

Given the reliability and accuracy of the Dexcom system plus the enhanced performance of the new Gen 4 sensor it’s not surprising that Mr. Gregg would challenge the industry to meet the standards which Dexcom is currently achieving with regularity.  Add in the fact that unlike the competition Dexcom continues to execute their plan with precision and it’s easy to understand why Diabetic Investor believes it’s only a matter of time before someone comes along and recognizes the value that Mr. Gregg and his experienced team is building at Dexcom.

This time is not now but is coming soon. Until that day comes Diabetic Investor will continue to support Mr. Gregg and his efforts to make this segment of the diabetes device market more transparent. While we do enjoy pointing out the many failings with Dexcom wannabes we couldn’t agree more with Mr. Gregg when he noted it’s time for these companies to be honest and tell patients, physicians and the rest of the world what they disclose should they ever make it to the FDA. When it comes to the CGM market the proof is in the data, real data. Or as Mark Twain noted; “Facts, or what a man believes to facts, are always delightful ….. Get your facts first, and then you can distort’em as much as you please.” When it comes to CGM Dexcom has the facts and it’s their competition who’s distorting the truth.