One Step Closer

One Step Closer

Diabetic Investor thinks there must be something
in the water today as the diabetes sector is releasing nothing but good news.
First comes word about Amylin (NASDAQ:AMLN) and Takeda partnering to develop
and commercialize Amylin’s promising obesity pipeline. Next word comes that
Dexcom (NASDAQ:DXCM) and Edwards Lifesciences (NYSE:EW) have received a CE mark
for their automated glucose monitoring system.

According to a joint press release; “This
CE Mark allows for commercialization of the system in the European Union and
the countries in Asia and Latin America that recognize the CE Mark. Market
evaluations of a first generation product are expected to begin in a limited
number of European sites before the end of the year.”

Just last week Diabetic Investor mentioned
that the hidden value in Dexcom wasn’t their agreements with Animas or Insulet
(NASDAQ:PODD). Nor did we believe the company would succeed solely marketing
their products to patients with diabetes. The real value in Dexcom was their
hospital based system, a system that will enhance productivity and find a more
favorable reimbursement profile.

While many continue to question just how beneficial
tight glucose control is in an ICU unit, they are missing the point. Looking
over the body of research on the subject Diabetic Investor believes it’s not a question
of whether or not tight glucose control in the ICU improves outcomes, rather
how best to achieve those outcomes. This is not unlike what happened before the
DCCT trial results confirmed what many had long believed; tight glucose control
leads to better overall outcomes and fewer long term complications.

Considering that the Portland Protocol is
being widely adopted Diabetic Investor believes it’s just a matter of time
before the protocol is refined and we’ll see improved outcomes and lower ICU
costs. Central to this approach is the ability to cost effectively gather the
data needed to implement the protocol which is where the Dexcom system comes
in. The fact is with the growing shortage of ICU nurses and the increasing role
of technology in the ICU, a hospital based CGM is not luxury but a necessity.

Kudos to Dexcom and Edwards for achieving
this important first step.